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We understand the mental stress of trading. Here, you can share your trading thoughts with fellow traders or read about futures contracts that you are not trading yet. Useful information on what large bank traders are buying or selling weekly available here.

Glossary of Terms for Futures Explained

Futures trading has its own lingo. You will run into phrases you don’t know. With any luck, this practical guide will aid you in understanding.

Annual Return – The return per year

Average losings – Gross Losings / Total # Losses

Average Lose Days – The average number of days before a losing trade is closed

Average winnings – Gross Winning / Total # Wins

Average Win Days – The average number of days before a winning trade is closed

Benchmark – A 60% stock / 40% bond portfolio is commonly accepted in the financial industry as the expected return

Buy-Hold – Buying a futures contract and holding on indefinitely. Popularized by billionaire Warren Buffet

Gross Losing – Total losses from losing trades. This is regardless of the winning trades.

Gross Winning – Total gains from winning trades. This is regardless of the losing trades.

Loss – A losing trade

Monte-Carlo Simulation – A random re-ordering of the closed trades to discover the best and worst possible outcome from trading a certain strategy

Payoff – Average winnings / Average losing

Profit Factor – Gross Winning / Gross Losing

Trade – A buy or sell transaction that is closed.

Trading Strategy – Pre-determined rules of entering and exiting trades

Win – A trade that results in profits

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