UCG Futures Trading

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SSEARCHKEYWORD

Contact | UCG http://www.theunitedcapital.com/contact/


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Contact | UCG http://www.theunitedcapital.com/contact/


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CAPITALMARKETANDOTC

DERIVATIVES


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CAPITALMARKET

21st century capital markets are

mainly hosted on computer based

Electronic trading systems; most can

be accessed only by entities within the

financial sector or the treasury

departments of governments andcorporations, but some can be accessed

directly by the public.

Physically the systems are hosted all

over the world, though they tend to beconcentrated in financial centers like

London, New York, and Hong Kong.

Capital markets provide for the

buying and selling of long term

debt or equity backed securities.


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DERIVATIVESMARKET

Derivatives are financial contracts

whose value is linked to the price of an

underlying commodity, asset, rate,

index or the occurrence or magnitude

of an event

Derivatives markets have been in

existence for as long, and even longer

than that for securities, it has been the

growth in the past 25 years that has

made them one of the pillars offinancial systems

It is true not only of developed, but

also developing economies

The term derivative comes

from how the price of these

contracts is derived from the

price of financial contracts


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Derivatives are traded in two kinds of markets:

Exchanges and OTC markets

Exchange-traded derivative contracts (ETD) arethose derivatives instruments that are traded via

specialized derivatives exchanges or otherexchanges

Interest rate & index products

Over-the-counter (OTC) derivatives are contractsthat are traded (and privately negotiated)directly between two parties, without goingthrough an exchange or other intermediary

The london market international OTC for gold andsilver


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Unlike exchange-traded derivatives, OTC

derivatives are not traded on an exchange, but

are rather negotiated between two parties, one

typically an investment bank and the other a

corporate, which has an economic utility to beaddressed by the instrument

For example, a manufacturing company may

have receivables in US Dollars but incurs costs in

Ringgit. A declining US Dollar may prompt the company to

hedge its risks against further decline

THEOTC MARKETALLOWSFLEXIBILITY


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Market analysis


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How to begin?

Let's look at three ways on how you would

analyze and develop ideas to trade the market

Technical analysis

Fundamental analysis

Sentiment analysis


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Market

Bullish


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Bearish


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Technical analysis

Technical analysis is the framework in whichtraders study price movement.

Technical analysis

looks at the price

movement of a

security and uses this

data to predict its

future price

movements.


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Fundamental analysis

Fundamental analysis is a way of looking atthe market by analyzing economic, social, and

political forces that affects the supply and

demand of an asset

Fundamental analysis looks at

economics factors.


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Sentiment analysis

The markets do not simply reflect all the

information out there because traders will all just

act the same way, it determine the market on

current or future outlook

Sentiment analysis

looks at ones personal

judgement or

evaluation.


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Conclusion


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Which type of analysis is the best?


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Candlestick Pattern


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Candlestick movement

Open

Low

High

Close Open

Low

HighClose


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Candlesticks Movement

Bullish

candle

Bearish

candle

OPEN

OPEN

OPEN/

HIGH

OPEN/

LOW

CLOSE

CLOSE

CLOSE/

LOW

CLOSE/

HIGH

LOWLOW

HIGH HIGH


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Movement (cont)

Inverted HammerShooting Star

HammerHanging Man

OPEN

OPEN

OPEN/

LOW

OPEN/HIGH

CLOSE/HIGH

CLOSE

CLOSE

CLOSE/

LOW

LOWLOW

HIGH HIGH


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Doji Movement (cont)HIGH OPEN HIGH/

CLOSE HIGH

HIGH

OPEN LOW/

CLOSE LOW

LOWLOW

OPEN/

CLOSE

OPEN/

CLOSE


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What is Candlestick Trading?

Candlesticks can be used for any time frame,whether it be one day, one hour, 30-minutes -whatever you want! Candlesticks are used todescribe the price action during the given time

frame.


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If the close is above the open, then a hollowcandlestick (usually displayed as white) is drawn or ingreen

If the close is below the open, then a filled candlestick

(usually displayed as black) is drawn or in red The hollow or filled section of the candlestick is called

the "real body" or body.

The thin lines poking above and below the body displaythe high/low range and are called shadows.

The top of the upper shadow is the "high".

The bottom of the lower shadow is the "low".

Candlesticks are formed using the open, high,

low, and close of the chosen time period.


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Short bodies imply very little buyingor-selling activity.

Long bodies imply very much buyingor selling activity.

The Bulls mean buyers and Bears

mean sellers. Long white candlesticks show strong

buying pressure. The longer the whitecandlestick, the further the close isabove the open.

Long black (filled) candlesticks showstrong selling pressure. The longerthe black candlestick, the further theclose is below the open.

Body


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Mysterious Shadows

The upper and lower shadows on candlesticksprovide important clues about the tradingsession.

If a candlestick has a long upper shadow andshort lower shadow, this means that buyersbid prices higher

If a candlestick has a long lower shadow andshort upper shadow, this means that sellersforced price lower


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Basic Candlestick PatternsSingle,

double, triple and a group


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Spinning Tops

Candlesticks with a long upper shadow, long

lower shadow and small real bodies are called

spinning tops

The pattern indicates the indecisionbetween

the buyers and sellers

If a spinning top forms during an uptrend???

If a spinning top forms during a downtrend???


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Marubozu

Marubozu means there are no shadows from

the bodies.

Depending on whether the candlestick's body

is filled or hollow, the high and low are the

same as its open or close.


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White Marubozu

Contains a long white body with no shadows.

The open price equals the low priceand the

close price equals the high price.

This is a very bullish candle.

It usually becomes the first part of a bullish

continuation or a bullish reversal pattern.


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Black Marubozu

Contains a long black body with no shadows.

The open price equals the highprice and the

close price equals the low price.

This is a very bearish candle.

It usually implies bearish continuation or

bearish reversal.


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Doji

Doji candlestickshave the same open and close

priceor at least their bodies are extremely short.

A doji should have a very small body that appears

as a thin line.

There are four special types of Doji candlesticks


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If a Doji forms after a series of candlesticks

with long hollow bodies (like White

Marubozus), the Doji signals that the buyers

are becoming exhausted and weakening.

In order for price to continue rising, more

buyers are needed but there aren't anymore!

Sellers are licking their chops and are looking

to come in and drive the price back down.


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If a Doji forms after a series of candlestickswith long filled bodies(like Black Marubozus),the Doji signals that sellers are becoming

exhausted and weak. In order for price to continue falling, more

sellers are needed but sellers are all tappedout!

Buyers are foaming in the mouth for a chanceto get in cheap price.


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There are a lot of candlesticks pattern that you

need to study!!!

The hammeris a

bullish reversal patternthat forms during a

downtrend.

The hanging manis a

bearish reversal pattern

that can also mark a topor strong resistance

level.


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The inverted hammer

occurs when price has

been falling suggests the

possibility of a reversal.

The shooting staris abearish reversal pattern

that looks identical to the

inverted hammer but

occurs when price has

been rising


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Single

candlestick


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Double

candlestick


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Chart pattern

You have to know the basic chart patterns and

formations

When correctly identified, it usually leads to

an explosive breakout

Our goal is to spot big movements before they

happen so that we can ride them out and rake

in the cash


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Double tops

Double top is a reversal patternthat is formed after there is an

extended move up

The "tops" are peaks which are

formed when the price hits a

certain level that can't be

broken

After hitting this level, the price

will bounce off it slightly, but

then return back to test thelevel again.

If the price bounces off of that

level again, then you have a

DOUBLE top!

It is telling us that the buying

pressure is just about finished.


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Double bottoms

Double bottom is also a trendreversal formation, but this time we

are looking to go long instead of

short

The bottoms" are lower peaks

which are formed when the price

hits a certain level that can't be

broken

After the previous downtrend, the

price formed two valleys because itwasn't able to go below a certain

level

The second bottom wasn't able to

significantly break the first bottom,

This is a sign that the selling

pressure is about finished


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Head and Shoulders

It is formed by a peak (shoulder), followed by a higherpeak (head), and then another lower peak (shoulder).

A "neckline" is drawn by connecting the lowest pointsof the two troughs.


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Inverse Head and Shoulders

A valley is formed (shoulder), followed by an evenlower valley (head), and then another highervalley (shoulder)

A "neckline" is drawn by connecting the highest

points of the two troughs


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Support and Resistance


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Support and resistance represent keyjunctures where the forces ofsupply and demand meet

In the financial markets, prices are driven byexcessive supply (down)and demand (up)

Supplyis synonymous with bearish,bears and selling

Demandis synonymous with bullish,bulls and buying


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Support and resistance is one of the most

widely used concepts in trading.


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Support and resistance

Supportand Resistanceare like a

floor and ceiling while the price is

located between them.

The main objective is to help usknowing price trends, chart patterns

and determining whether the trend

is likely to continue or reverse.

Support and Resistance exist becausetraders have memories. They tend to

repeat actions took place in the

past.

R i t i i l l h ll ' ti


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Resistanceis a price level where seller's actionis strong enough to interfere or reverse anuptrend. (Sellers overcome buyers)

Resistance can be drawn by a horizontal (ornear horizontal) line connecting a few pricetops.

Resistance also helps traders to decide whento sell.

S t i i l l h b ' ti i


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Supportis a price level where buyer's action isstrong enough to interfere or reverse adowntrend. (Buyers overcome sellers)

Support can be drawn by a horizontal (or nearhorizontal) line connecting a few pricebottoms.

Support also helps traders to decide when tobuy.


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How to draw???

Its better to draw support and resistance linesby drawing horizontal lines through lower and

upper edges of congestion areas rather than

extreme points


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When the price passes through resistance, that

resistance could potentially become

The more often price tests a level of resistance or

support without breaking it, the stronger the area

of resistance or support is.


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Resistance line

Support line


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Resistance line

Profit USD10


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Support line Profit USD17


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Trend Lines

To draw trend lines properly, all you have to

do is locate two major tops or bottoms and

connect them.
http://www.babypips.com/school/images/grade1/trendlines-example.png


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Channels

If we take the trend line theory one step

further and draw a parallel line at the same

angle of the uptrend or downtrend

We will have created a channel
http://www.babypips.com/school/images/grade1/channel.png


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The Bounce

One method of trading support and resistance

levels is right after the bounce.


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The Break

There are two ways to play breaks: the

aggressive way or the conservative way.

The Aggressive Way

The Conservative Way


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Fibonacci


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Fibonacci

Fibonacci ratios will be used a lot in ourtrading

Fibonacci arise from the following number

series: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89,144

Fibonacci Retracement Levels0, 0.236, 0.382, 0.500, 0.618, 0.764, 1

Fibonacci Extension Levels0, 0.382, 0.618, 1.000, 1.382, 1.618

Fibonacci Retracement Levels


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Fibonacci Retracement Levels

0, 0.236, 0.382, 0.500, 0.618, 0.764, 1

: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144

The key Fibonacci ratio of 61.8% - also referred to as "the

golden ratio" or "the golden mean" - is found by dividing one

number in the series by the number that follows it.

For example: 8/13 = 0.6153, and 55/89 = 0.6179.

The 38.2% ratio is found by dividing one number in the series

by the number that is found two places to the right.

For example: 55/144 = 0.3819.

The 23.6% ratio is found by dividing one number in the series

by the number that is three places to the right.

For example: 8/34 = 0.2352.


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Fibonacci level calculate the different between

the high and low

Then divided the zone according to the

Fibonacci ratio

0, 0.236, 0.382, 0.500, 0.618, 0.764, 1


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Why are we using Fibonacci?

Fibonacci can be treated as the golden line,

everyone in the world are looking at this level

Fibonacci will tell you the comfortable profit

zone

It is a signal for you to enter trade


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Traders use the Fibonacci retracement levels

as potential support and resistance areas

So many traders watch these same levels and

place buy and sell orders on them to entertrades or place stops, the support and

resistance levels tend to become a self-

fulfilling prophecy


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d


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Uptrend

0


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100.0

76.4

68.2

50.0

31.8

23.6

D d


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Downtrend

100.0


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0.0

23.6

38.2

50.0

61.8

76.4

What Does Fibonacci


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ExtensionsMean?

Levels used in Fibonacci retracement to forecastareas of support or resistance.

Extensions consist of all levels drawn beyond thestandard 100% level and are used by manytraders to determine areas where they will wishto take profits.

The most popular extension levels are 161.8%,

261.8% and 423.6%.


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Combining Fibs with


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g


The best ways to use the Fibonacci tool is to spotpotential support and resistance levels and see if

they line up with Fibonacci retracement levels.

Combining Fibs with


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g

Trend Lines

Another good tool to combine with theFibonacci tool is trend line analysis.

Combining Fibs with


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g

Candlesticks

We can also combine Fibs with candlesticks pattern In combining the Fibonacci tool with candlestick

patterns, we are actually looking for exhaustivecandlesticks


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Indicator


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Parabolic SAR


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Parabolic SAR

Indicator that can help usdetermine where a trendmight be ending is theParabolic SAR (Stop AndReversal)

Parabolic SAR places dots, orpoints, on a chart that

indicate potential reversals inprice movement

How to Trade Using Parabolic SAR


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How to Trade Using Parabolic SAR

When the first dots are below the candles, it is

a buy signal

When the first dots are above the candles, it is

a sell signal

Enter trade


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Stochastic


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Stochastic

Stochastic is another indicator that helps us

determine where a trend might be ending

Stochastic is an oscillator that measures

overbought and oversold conditionsin themarket

How to Trade Using the Stochastic


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How to Trade Using the Stochastic

Stochastic tells us when the market isoverbought or oversold. The Stochastic isscaled from 0 to 100

When the Stochastic lines are above 80 (thered dotted line in the chart above), then itmeans the market is overbought

When the Stochastic lines are below 20 (the

blue dotted line), then it means that themarket is oversold


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Death cross

Golden cross

This is the signalfor you to quit or

enter trade

Overbought

Oversold

Moving average


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Moving average

Moving averages smooth the price data to form a trendfollowing indicator. They do not predict price direction,but rather define the current direction with a lag.

Closing price

The trend

More active, closer to


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candlestick

Moving average

5 periods

An example


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An example

Moving average (5) is the most active line, ifthis line cross up to moving average (20)

There is a signal of uptrend market

Moving average (5) is the most active line, ifthis line cross down to moving average (20)

There is a signal of downtrend market


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Moving average (5)

Moving average (20)

Moving average (5)

Moving average (20)

CROSS

CROSS

The bigger the angle,

the stronger the

moving beat


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Technical analysis


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Types of Charts

Line chart

Bar chart

Candlestick chart

Line chart


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Line chart

A simple line chart draws a line from one closing priceto the next closing price.

When strung together with a line, we can see thegeneral price movement of a currency pair over aperiod of time.

Bar chart
http://www.babypips.com/school/images/pre-school/line-chart2.png


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Bar chart

A bar chart is a little more complex. It shows theopening and closing prices, as well as the highs and

lows prices
http://www.babypips.com/school/images/pre-school/bar-chart2.png


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Candlestick chart


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Candlestick chart

Candlestick chart show the same information as abar chart, but in a prettier, graphic format.

Candlestick bars still indicate the high-to-lowrange with a vertical line.


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Sentiment Analysis

Sentiment analysis


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Sentiment analysis

The sentiment analysis is the generalprevailing attitude of investors as to

anticipated price development in a market.

This attitude is the accumulation of a varietyof fundamental and technical factors,

including price history, economic reports,

seasonal factors, and national and worldevents.


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For example, if investors expect upward pricemovement in the stock market, the sentiment

is said to be bullish.

On the contrary, if the market sentimentis bearish, most investors expect downward

price movement.


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It is basically:

Your judgment

Your evaluation

Your concern

Your decision

You trade


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Risk Control

Risk Control


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How to control risk

Every trading there must be a target

Trading system

Risk Control


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Cut Loss System (Target 1535)

Buy new 1530

1535

1525Stop loss

Sell close, -5


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Holding System (Target 1535)

1530

1535

1525

Buy new

Sell close, +5

Stop loss


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Locking System (Target 1535)

1515

1520

1525

1530

1535

Buy new

Stop loss

Buy close

Sell new

Sell close

Profit = 10

Profit = 5


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06.1 Risk Management

Locking / Hedging

Locking is a technique used to minimise the loss via performing a new transaction in theopposite direction of the former transaction (using the same lot size) as it will aid in lockingthe trading position.

Unlocking is a technique to recover the loss and/or profit from the locked trading position.


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Rolling

Rolling is one of the techniques used to gain additional profit via performing a newtransaction by doubling up in the same direction from the former transaction, as it used togain the equal if not more profit in the same or faster time taken than the previoustransaction.


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When to trade?

When to trade?


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When to trade?

When start to trade, you need to knowthe below analysis

Technical analysis

Fundamental analysis Sentiment analysis

And follow the Golden rules


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And follow the Golden rules

Buy lowSell high

Conclusion


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Co c us o

There are many factors to influence you intrading

So, develop your own trading system, and

abide to this system whenever you entertrade.

Find indicators that help identify a new trend. Find

indicators that help CONFIRM the trend.

Define Your Risk Define Entries & Exits


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Type of Trading

Type of trading


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yp g

Type of

TradingCapital

Time

FrameSpeed

Charts to

analysis

Target

Profits

Prepare for

Losses

Technical

Analysis

Fundamental

Analysis

Scalping USD$20000 -

USD$30000

15 min -

1 Hour

Fastest M1, M5,

M15, M30

100-150

pips

200-300

pips XXXXX XX

DayTrading

USD$30000 -

USD$400001 Hour -4 Hours

Fast M15, M30,H1

150-500pips

300-1000pips XXXXX XX

Swing

Trading

USD$40000 -

USD$100000

1 Day -

2 Weeks

Slow H1, H4, D1,

W1

500-3000

pips

1500-9000

pipsXXXX XXXX

Position

Trading

USD$100000

Above

2 Weeks

Above

Slowest D1, W1, M1 3000 pips

Above

9000 pips

Above XXX XXXXX


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Day trade


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Overnight trading


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Position trading


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P d W P id


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Products We Provide

Commodities

Commodity futures markets have long been popular among producers of various rawmaterials that need to hedge price risk to protect business but due to hugeimprovements in accessibility many investor are now utilizing these markets to enhancecapital gains. This sector is largely affected by growth, especially from China andemerging economies, and on the whole commodities outperformed equities during 2009to 2011 period. Similar to equities they are considered risk assets performing well ingrowth environments but assets such as gold and silver can also receive safe haven

demand meaning they can do well during uncertainty and investor fear making thesector very interesting and potentially profitable. The study of price action is very usefulto determine future price movements along with global economic data and decisions bythe Federal Reserve in the US on monetary policy.

Currency Pairing

There was a time when dealing in currencies was just for large organisations looking tohedge against currency risk but now due to lower capital requirements the markets havebeen opened up to the average investor. Price action analysis works very well in thissector but be aware big moves can occur from news regarding interest rates,employment and GDP from the respective country. Any pair involving the USD is can bevery active given the attention surrounding quantitative easing at present.

Indices

A stock index is a weighted average of a group of company share prices. If you are aninvestor more inclined to digest macro-economic data rather than individual stock news


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S/No.

Amount Transfers / Bankin to :

New Account Margin

Rate :

Additional Margin

I hereby declare and also aware that :

Date

Trading Account No.Name

DEPOSIT ADVISE

Amount

Name of bank

Bank Account Number

Bank Reference

(Reg : 171326)

(Reg : 171326)


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Date

Name ofClient Trading Account No.

Request Amount to Be Transfer to :

I hereby declare and also aware that :

Signature of Client Marketing Operation Finance

Dept Dept Dept

ID/Passport Number

Others :Saving Current Individual Joined USDType of Account

PAYMENT INSTRUCTION

Request

Amount

For Official Use Only

Remarks

USD / Other

Name of Bank

Bank Account Number

Bank Address

Swift Code

(Reg : 171326)

1. All the above information's given above are true and correct.2. All bank charges from your bank account ARE bound by me

3. Number of days clearing and credit to my bank accountare subject your company and bank policy.

4. I shall hold you NO responsibilities in any due cause.

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