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: Futures market markets electronic trading portfolio position profit sell simultaneously.

In recent years electronic market places have risen to replace the open outcry markets. Open outcry still predominates on the U.S. exchanges, although with an increased reliance on electronic aids. Electronic markets have many benefits over the traditional markets. The costs of trading are reduced, access and transparency are improved, and a level playing field is created. LIFFE decided to become an electronic exchange in 1998 and has gradually moved all their individual futures markets from the pits to LIFFE Connect, their totally electronic trading platform. What are Futures used for? There are 3 primary reasons for participating in the futures market. Hedging is taking a futures position to protect the value of an asset. If you have an investment portfolio of UK shares and you believe that the market is due for a correction (a fall), you could sell the FTSE100 futures market. This would mean that if the market fell, although your portfolio would drop in value, your futures position would profit and offset your portfolio's loss. Arbitrage is when an opposing position is taken simultaneously in two markets with a view to making a profit from the change in the difference in prices. For example, if you felt that the price of the FTSE100 futures was trading at too great a premium to the underlying cash market, you 13 could sell the futures and simultaneously buy the cash market. If you were correct the markets would converge creating a profit.

Previous Page

Next Page

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