The principle of futures trading
Unlike most trading programs, quik is a professional tool with all its inherent advantages and disadvantages. The first includes a truly gigantic set of assets and high reliability, while the second includes a rather confusing interface. Therefore, the investor has to perform several difficult steps to build a chain of orders.
To the credit of the developers, the software package allows you to save settings. Although in this regard it does not matter whether you choose Kwik or MT5. Each asset traded on the Moscow Exchange has its own characteristics, which include:
- individual code;
- execution time, or expiration;
- volume of liquidity.
Excellent video about how to trade futures in quik. But without some theoretical explanations the process cannot be understood.
Silver forecast
Stock charts show that silver prices are near their lowest levels in recent years. Analysts believe that the metal does not have the prerequisites for strong growth in the medium term. Quotes for the next two years will be contradictory; instability in the financial sector and increased geopolitical risks should be taken into account.
Long-term forecasts paint a more positive picture. The world's population is increasing, the standard of living is rising. The production of electrical appliances and electronic devices from televisions, refrigerators, washing machines to computers and cell phones using silver alloys will increase. Reserves of the precious metal are dwindling, which means prices will rise over the next 15-20 years.
General characteristics and features of silver on the exchange
Precious metals traded on the exchange are refined, that is, purified from all unnecessary impurities. Thanks to this, futures are standardized, since any bullion contains a strictly defined content of precious metal. This makes it possible to make so-called arbitrage transactions, when you can buy and sell goods on different exchange platforms and profit from the difference in quotes.
Analysis and influencing factors
The price of silver, like other exchange-traded assets, depends on the balance of supply and demand. Supply is primarily affected by the volume of production in countries that mine this metal. Demand is largely provided by industrial needs.
Statistics show that the prices of gold and silver change almost synchronously. The correlation between changes in prices of these precious metals is about 70%. Silver, although to a lesser extent than gold, is still a protective asset, so during times of economic turmoil its price may rise.
The seasonal factor should not be discounted. For example, at the end of the year at Christmas, the demand for silver products increases.
Features of investing
First of all, you should understand that a futures is a futures security that has a limited period of validity. They are usually issued for up to three months, four times a year. And they are also performed four times: in March, June, September and December. But this rule applies only to Russian stock exchanges.
Moreover, their liquidity accumulates towards the end of the validity period. If we assume that today is September 10, and there are securities on the market with expiration dates of September 15 and December 15, then it would be preferable to purchase December contracts. Simply because most of the liquidity has already flowed into them. 2-3 weeks before the specified dota, it would be recommended to give preference to September assets.
It often does not matter which Russian exchange platform you choose. It makes no difference whether you trade RTS index futures here or on the Moscow Exchange. Of course, the list of tools there is slightly different, but the prices are almost identical.
Codes and encryption
The quik program is designed for fairly experienced investors, so the contract specification here is formatted in four characters:
- the first two talk about the name of the asset;
- the third is the month of execution in letter code;
- the fourth is the year of expiration.
You can find their decryption on the exchange website, or directly in the terminal. Moreover, they are arranged in alphabetical order, which allows you to quickly find the required tool.
You should not try to guess the name; the logic of the compilers of these codes was understandable only to them. For example, the symbol of the Russian ruble here is “Si”, and for some reason the month of February is indicated by the letter “G”. Well, at least the developers decided not to change it for a year.
How to trade futures on quik
The technology for purchasing securities on Russian stock exchanges is based on the principles of the traditional order book. That is, the trader is presented with a list of quotes with the volume of assets offered. It looks like a column of numbers, green and pink.
Green shows the number of sell orders, pink – buy orders. To enter the market, you need to hover the cursor over the required asset price in the order book and click. After this, a menu will pop up where you will need to select the “new order” item. Here you will need to select:
- transaction price;
- number of purchased lots;
- from which account the funds will be debited.
You need to know that an investor can not only buy futures, but also sell them. In the first case, an obligation is assumed to close the contract over time by exchanging the goods for money. In the second, you will have to perform the reverse procedure, that is, buy back the already sold amount of assets.
Investment technology
Before trading futures in quik, video lessons recommend checking the amount of free funds in your account. This is a completely correct observation, but one thing must be remembered. When working on stock exchanges, a trader receives a leverage of 1:10, which is used as collateral for the transaction.
This means that with 100 thousand rubles on deposit, he can make transactions worth 1 million. And one more thing that can be a real discovery for people far from financial markets. It is generally accepted that only very wealthy people can gain access to exchange platforms. However, this is not the case. In fact, the minimum amount for opening a deposit starts from 10,000 rubles.
After the investor has executed a trading order, he goes into the trading system. As soon as the price reaches the specified value, the transaction will be considered open. This means that every movement in quotes will be reflected in the size of your personal account.
Some nuances
But you should not rush to press the button, but it is strongly recommended that you check all the settings. The fact is that they are saved after each transaction. There is another interesting nuance here. Purchasing futures at a predetermined price will require cash. But if a pending order was placed, then the amount “as if” is not debited from the account, because in fact the purchase has not yet been completed.
And here the difference between the operating algorithms of MT5 and quik appears. Metatrader allows you to place an arbitrarily large number of pending orders; funds from the deposit will be debited as they are executed. And it is quite possible that for some there simply is not enough money. This option is not possible in Kwik. As soon as you place a pending order, the program will reserve funds for its execution and recalculate the balance. Yes, you can cancel a pending order at any time, without the slightest penalty. And only then will the money from the “reserve” become free.
Transaction procedure
For beginners, the difficulty of how to trade futures on the RTS is caused by the purchase process itself. The fact is that there are thousands of assets represented here. Typically this is just over 10,000 instruments. Stocks, bonds, currency pairs, indices. Add to this the fact that they all have different expiration times, and you understand the complexity of the procedure. It is worth recognizing that the Quick program itself is far from perfect. Yes, its possibilities are truly limitless; it allows you to place various trading orders. But first you need to select the tool that you need to purchase. To do this, you will need to perform the following sequence of actions:
- find the menu item “quote flow”;
- highlight those category items that interest us;
- create a “current trading” window;
- transfer there those futures with which we will work.
And here it is worth remembering that the program will not write to us “Sberbank ordinary shares, with an expiration date of December 15, 2021,” but will simply give us a four-character code. This means that you will first need to decide which security will be purchased. Then find its code. And only then go on a search.
Conclusion
Therefore, before trading futures on the RTS, quik training will require a lot of time. And this is what scares off novice investors. But the result of the work done is worth all the effort. The reason lies in the fact that only here you can get the most favorable conditions. In addition, it offers the fastest access to the exchange platform.
As it turned out, up to 30% of all transactions on the Moscow Exchange are now carried out through trading robots. And if you consider that Quick is the only platform for direct access, then its ability to optimize the operating algorithm becomes clear. For this purpose, the QPILE programming language is integrated into it. And one more important fact. The program is completely protected from outside interference and ensures absolute security. For this, investors are ready to forgive its not-so-simple interface, because guarantee and reliability are much more important to a professional. And with this, quik is completely fine.
Field M (execution month) of the futures code
So, field M - month of futures execution, is encoded with the following symbols:
Month | Futures code
- January - F
- February - G
- March - H
- April - J
- May - K
- June - M
- July - N
- August - Q
- September - U
- October - V
- November - X
- December - Z
ForTrader.org magazine reminds you that each futures contract has its own expiration date. About the month when its operation ends, i.e. expiration occurs, as we said above.
The idea of making money is my goal
For those who are not in the know: a futures is an instrument (a certain contract) on the exchange between the seller and the buyer, it fixes the price level and delivery time of the underlying asset (be it shares or goods). You can make money both by selling and buying futures. This gives you more opportunities to earn income during a financial day or week.
The idea of making money by online trading futures on Sberbank shares required some thought. I began to spend a lot of time reading articles on the Internet and becoming aware of the signals for placing positions. There are not too many signals, there is enough information on the RuNet, it is not difficult to remember them, but the main difficulty is to apply them correctly in practice.
The goal is to turn a profit in the very first month, earn money from the invested funds, and not lose the starting capital. On the second - do +50%, on the third +100%.
What I decided to do, calculation of the idea
To begin with, I decided to study information about the types of futures, brokers and Russian exchanges. I chose the most reliable option for myself - Sberbank futures on the Moscow Exchange (MICEX). You can choose any broker; for me, Finam was the best option.
The minimum price of one lot in October 2021 varies in the range of 3800-4000 rubles, the cost may change slightly every day. My initial investment was 6,000 rubles, which is enough to purchase 1 lot.
Planned net profit of 30% per month from the starting portfolio.
My method is scalping, this is a type of trading when in a short period of time (6-15 minutes) a huge number of transactions are made, both for the sale and purchase of assets. There is a commission for each transaction (it is not large), so the initial budget should be with a reserve, 1.5-2 times more than the guarantee.
