The following is a short extract from the course "How To Trade The Futures Market", please click here Trade Futures Course for full details on how to obtain the full text, futures trading simulator along with sample data and bonus trading ebooks package.

Find: Trading pit market liquidity traders phone brokers local essential broker.

All trading on exchanges used to take place in what are called trading pits. These are polygon shaped rings with steps descending into the centre. The traders stand in the pits on the steps facing each other. The traders in the pit are either brokers, whose job is to execute (by open outcry) the orders of other traders who are outside the pit or exchange, or locals, who are independent traders trading purely for their own profit. Around each pit, which is used as a marketplace for only one contract, there are phone booths manned by phone brokers. An order, originating from outside the exchange, is placed by telephone, with a phone broker, who then signals the order to their broker in the pit, who executes it. The value of the pit brokers is obvious, the value of the local is less apparent. Locals, though, perform an essential role for the market. Although the aim of the local is to create a profit for themselves, the by-product of their active trading is that they create liquidity in the market. Liquidity is essential if a market is to thrive. Potential market participants are only interested in trading markets with reasonable liquidity. Liquidity offers the assurance that they will be able to enter and exit positions as and when they want.

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How To Trade The Futures Market

For full details about this detailed course, which includes a futures trading simulator software package complete with some sample trading data, and free trading ebook package please click here Futures Trading Course

If you are more interested in trading the eminis you need to review these emini - e-mini trading courses