Updated Aug 26, 2024

FintechZoom Stock Futures: Features, Benefits, and Case Studies

Recently, fintech platforms have contributed a lot to shaping the trading environment for traders. One such platform is FintechZoom, which has become an industry giant in stocks and futures trading. 

Although it is a comprehensive trading and investment platform, it has several features that make it proficient in stock futures. There have been various cases where users have benefited from using it. 

Let’s delve more into it and learn how proficient FintechZoom stock futures are in future contracts, its benefits, and case studies. 

What are Stock Futures?

Analyzing Stock Futures

Stock futures, or futures, are financial contracts for buying and selling underlying assets at a future date. The price and amount of the underlying asset are predetermined on the day of the agreement. These financial contracts are crucial for strategies like hedging, speculation, scalping, etc. This type of trading requires the investor to buy or sell the underlying asset at the market price of the expiration date. 

In future contracts, underlying assets include:

  • Commodities like ground oil, crude oil, wheat, rice, corn, etc.
  • Currencies like the dollar, pound, euro, yen, etc.
  • Energy-providing assets like gasoline, natural oil, and heating oil.
  • Valuable materials, like gold, silver, and diamonds.
  • Equity.
  • Stock Indices.

Remember that the buyer takes possession of the underlying assets only on the date of expiration, and the earnings generated through this will be charged with phantom tax

How Does FintechZoom Contribute to Stock Futures? 

The following are the different ways FintechZoom assists in stock and futures trading: 

1. Real-Time Tracking

Several factors affect the prices of underlying assets. To effectively monitor these changes, FintechZoom stock futures provide real-time tracking of these future contracts. This helps traders understand live market feeds and observe the changing patterns of the variances to craft effective strategies. 

Although real-time tracking is available on almost all platforms, FintechZoom’s real-time tracking is powered by some of the best software in the market that allows it to correctly measure and track the performance of stocks and future contracts. 

2. Better Accessibility 

Compared to traditional brokerage firms, where traders need to personally visit the firm and do a huge amount of paperwork, FintechZoom stock futures allow users to open trading accounts and start trading within a few clicks on their devices. You just need to visit the official website of FintechZoom to learn about the process of trading futures and creating an account. 

3. Fees

While trading futures contracts through any brokerage platform, traders are required to pay the following types of fees: 

  • Commissions: This is a fee that platforms charge you every time you make a trade.
  • Hidden fees: This includes various miscellaneous charges that need to be paid by investors. 
  • Exchange fees: A fixed amount of fee charged for transferring funds.
  • Regulatory fees: A fixed amount of fee charged along with commission on trading.

While other trading platforms charge a huge amount of fees, FintechZoom is known for providing lower transaction fees compared to its competitors. These fees can directly impact your expenses, resulting in a changed tax reference number

4. Risk Management

Considering the main types of risk in futures trading, i.e., account-level risk and trade-level risk, FintechZoom provides tools to provide security against these risks. This includes only allowing a small amount of future trade for beginners to avoid bearing huge account-level risks.  

To assist with trade-level risks, FintechZoom stock futures provide expert assistance for beginners to stop losing orders and prevent them from making unfavorable trades. 

Stop Loss Order: It is an order that closes out a position when the price moves against you. 

5. Mobile Access

Due to active futures trading, the prices of futures contracts keep fluctuating. Traders need to constantly keep an eye on the prices to predict the future market price of their underlying assets. Taking this into account, FintechZoom focused on users’ accessibility and made its platform available for mobile users too. This allows users to access and know the status of their future contracts anywhere and anytime. 

6. Direct Access Order Routing

It is a crucial component of FintechZoom stock futures that enables traders to place their trades directly through electronic communications networks. This system eliminates the need for a broker or middleman, allowing extremely fast trades within a few minutes.

Furthermore, a relatively slow buy-and-sell order will make it difficult to find a good and profitable trade order. Utilizing FintechZoom for stock futures trading can help you get faster and more worthwhile orders. 

Features of FintechZoom

FintechZoom logo

FintechZoom provides a compelling user experience for its users by incorporating the following features: 

1. Analytical Tools

One of the best features of the platform is the availability of numerous analytical tools. These tools are for filtering ETFs and equities, charting tools, economic calendars, trading journals, risk management tools, technical analysis tools, backtesting tools, and copy trading. These tools help investors and traders effectively manage and track their invested stocks and shares. 

2. Educational Content

For a novice audience, FintechZoom offers several kinds of instructional material. This includes articles on types of markets, the process of stock trading, market mechanics, market analysis, trading strategies, and many more. It also has a specialized section for expert traders that offers in-depth knowledge of topics like research, analyses, changing market conditions, and relevancy factors. 

3. Covers the Latest Market News

Taking market variances into account, FintechZoom offers all the market updates on stock prices, business announcements, significant market events, product launches, etc. This helps users stay updated with all the happenings in the market and make a worthwhile investment or trade in the market. 

4. User-Friendly Interface

Another commendable feature of FintechZoom is its user-friendly interface. Users can easily navigate different pages, such as markets, businesses, crypto, money, economy, lifestyle, and their services. This allows users to access important information effectively.

5. Personalization of Notifications

Due to being powered by artificial intelligence, FintechZoom provides personalized notifications by highlighting the interests of its users. Furthermore, it also provides timely notifications about price fluctuations, market conditions, and events to users, keeping them updated. 

Make sure to utilize these aforementioned features completely to make a rational and profitable investment. 

Benefits of FintechZoom Stock Futures

After analyzing how futures trading works and its attributes, here are the benefits of investing money in it.

  • Highly Leveraged Investments: With future trading, investors can control huge profits with small capital, thanks to their high leverage. This means that investors can earn a greater value from stocks than they could by purchasing them. 
  • Liquidity: Futures contracts are considered to be extremely liquid, as there will always be a significant number of buyers and sellers available. This allows traders to easily enter and exit trades. 
  • Low Trading Cost: As compared to other kinds of investments and trades, the cost of trading in futures contracts is low and can only rise to 1% of the contract value. Mainly, the fee depends on the service providers. Some online platforms, like FintechZoom, might charge a low fee, equivalent to $5, whereas some full-service brokers might charge $50.
  • Excellent for Diversification or Hedging: Investors can use future contract trading for various kinds of stocks and indices. This provides a diverse range of choices to traders and helps them reduce the risk of losses. 

These benefits make future trading attractive and one of the most viable investments in the current scenario. 

Case Studies of FintechZoom Stock Futures

We are providing you with two case studies, explaining the long-term and short-term FintechZoom stock futures investments by investors. 

1. Long-Term Investment Through FintechZoom  

To examine whether the assistance of FintechZoom will help in long-term investments, an investor used FintechZoom stock futures to learn about the market changes over a long period. 

To invest and earn a significant amount of ROI (return on investment), the investor picked the fundamental approach and used FintechZoom for the following purposes: 

  • The investor utilized FintechZoom to identify the stocks that are undervalued and hold the potential to make a significant return on investment. 
  • The portfolio management tools of FintechZoom, like an investment tracker, risk assessment, and personalized investment recommendations. 
  • The investor utilized FintechZoom’s dashboard to constantly track the status of their portfolio. 

After completing one year of investment, the following are the performance indicators: 

  • Percentage of return on investment of 40%.
  • Sharpe ratio of 3:2.
  • Yielded a dividend of 2.5%.

2. Short-Term Investment Through FintechZoom 

A potential trader named Joseph was interested in day trading, which is buying and selling financial instruments on the same day. The only issue stopping Joseph from investing was the in-depth analysis and access to real-time information. After some time, his friend introduced him to FintechZoom stock futures. After getting used to the platform, Joseph used charting tools, real-time tracking, and educational content available on FintechZoom. 

Joseph utilized the following elements of FintechZoom:

  • He used financial indicators like support and resistance levels, the Relative Strength Index (RSI), the moving average convergence divergence (MACD), the stochastic oscillator, and moving averages to evaluate the right entry and exit points of future trade. 
  • To understand market sentiments, he utilized FintechZoom stock futures indicators like the CBOE Volatility Index (VIX), the high-low index, the bullish percent index (BPI), and moving averages.
  •  Finally, he used FintechZoom’s stop-loss order and risk management tools to minimize losses.  

As a result of Joseph’s efforts and FintechZoom stock futures assistance, he managed to generate an annual ROI (return on investment) of 25%. After evaluating the performance of Joseph’s trade, the following are its outcomes:

  • Average profit per trade of $150
  • Average loss per trade of $75
  • A risk-reward ratio of 2:1
  • Win rate of 68%

These cases showcase that FintechZoom is proficient in both short-term and long-term investments, making it an all-rounder in investment. 

Wrapping Up

Investors should use FintechZoom stock futures to benefit users and get easy access to analytical tools, educational content, the latest market trends, and several other features. Whether you are a novice or a professional trader, FintechZoom provides a compelling trading ecosystem. Moreover, it can be easily used by both tech-savvy and technically inexperienced people, thanks to its user-friendly interface. 

Frequently Asked Questions
How is future trading done?

The buyer must purchase the underlying asset at a price set by the seller, regardless of the prevailing market price and its expiration date.

Can I hold futures contracts until the date of expiration?

It is mandatory to purchase or sell futures contracts before their expiration. For options, you can trade at the predetermined price of the underlying asset until the contract expires.

What are the five main types of futures trading?

The five main types of futures trading are stock, index, currency, commodities, and interest.

Does future trading hold a risk factor?

Yes, sometimes futures trading is riskier than stock trading because of the high leverage and volatility. Even a slight change in the price of underlying assets can affect trading.

What will happen if I don’t sell futures on the expiration date?

If the contract is not acted upon by its expiration date, it will expire, and the trader will go to expiration.

Sources

About Us by FintechZoom

Author - Veeramanchineni Lalitha
Veeramanchineni Lalitha

Finance Writer

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