Monday, November 29, 2010

online futures trading

 A futures contract is an agreement to buy or sell a commodity at a date in the future. Everything about a futures contract is standardized except its price. All of the terms under which the commodity or financial instrument is to be transferred are established before active trading begins, so neither side is hampered by ambiguity.The price for a futures contract is determined in the trading pit or on the electronic trading system of a futures exchange.

When choosing an online futures trading platform, there are several different criteria you should follow in order to choose the one that will work best for you. Consider these guidelines before you decide on a platform:

1) Minimum amount: Different platforms will require different minimums in order to open an account. The good thing about trading is that the requirement is pretty low i. The amount that you need to get started is usually between $3,500 and $5,000, as cash backing. Find the platform that  fits in your budget.

2) Dealing spreads: Dealing spreads refers to the amount of money that the dealers working for the platform earn. They earn this by purchasing a security and then selling it, making a profit off the sale. The dealers control the prices, so sometimes they may sell at a very high price, making more of a profit. Some platform companies have more restrictions on spreads than others, so this is something to look out for.

3) Commission rate: Different companies will charge different commission rates for their products, some taking more money from you than others. Some include the commission in the trade, so there are no additional charges.

4) Design: Each platform will look different, and it is really up to your preference and what you are used to. One platform may work for others and not you. Choose whichever design you feel comfortable with so that your trading experience will be easier.

These are some of the key factors in determining the best online futures trading platform for you. The same platform does not work for everyone. For example, those who are trading a lot and making a huge profit will not mind higher commission rates as much. Those just starting out will probably want a lower minimum amount since they do not want to risk as much. Follow these guidelines to make a decision that is best for you.



online futures trading
High frequency trading

Tuesday, November 23, 2010

High Frequency Trading


High frequency trading is an indication of the behavior of money and a measure of market risk. It is responsible for 20-30% or more of volume currently. It's continual, tick-by-tick, high-turnover buying and selling with real-time data to control risk while generating returns from minute change. It's coming from all sorts of capital sources, including hedge funds also. The investment advisors put their money to work and if they can't invest it, they deploy it in other ways.

At broad market, rebate trading, or furnishing liquidity, is necessary to help conventional institutional investors like pension funds efficiently to buy and sell large quantities of shares. High frequency trading depends on nearly equal and offsetting buying and selling in very small increments. This is the kind of activity currently dominating volumes.

The high-frequency trading means that much of the money moving your price and volume sees high equity risk and studies equity-markets behavior, not business fundamentals. This has been going on for some time but it's getting worse and worse, and it's not going to get better anytime soon. High Frequency Trading (HFT) has recently come to the attention of the investing public following the case of Sergei Aleynikov, a programmer of stealing the "goose that laid the golden egg", otherwise known as the the source code of Goldman Sachs' high frequency trading algorithms.

Supporters of high frequency trading say that the HFT systems make the market more efficient. Websites such as the High Frequency Trading Review try to balance both viewpoints and provide informed, objective commentary.


online futures trading
learn to trade

Learn to trade

Most of the individuals try to find an opportunity to discover alternative sources of income in the financial environment. Many are tired of the conventional working environment and instead are looking to tap into the same financial industries that so many others have profited from.

For the inexperienced person in this venture the more precious thing is learn to trade. Today the biggest mistakes that traders make in this high risk environment is taking the time to educate themselves in order to find success. When you learn to trade, you adopt the tools and lessons which are needed so as to find success and excel in your market of choice.

when you learn to trade Forex trading course,it helps to assist in getting your foot into the door for this investment opportunity and it really advance your skills in forex trading.Here you will be able to discover the numerous trades which can be made in this environment and see what opportunities best appeal to your financial interests. When you learn to trade in general you increases your opportunity to succeed and when you learn to trade with specific courses such as the Forex trading course you discover a detailed knowledge to maximize your trading prospective.

The knowledge which is obtained when you learn to trade is not something that can be done easily on your own and normally demands the help of an expert to generate understanding. When you seek a professional service which provides features like a Forex trading course, you can benefit from the knowledge and experience of that company in order to further improve your investing efforts.


High Frequency trading
Online futures trading