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: Bid one tick inside offer just place hit current sell.

Tip: One of the big advantages to electronic trading over the open outcry system is that there is no disadvantage to being a small trader. There is also no problem putting your limit orders just inside the best bid or offer. On the floor it was frowned upon to put a small bid just ahead of a bigger order. So if the market was 6431 bid for 50 and I start bidding 6431.5 for 1, it would be considered poor form. The advantage to me in placing such a bid is that I would get hit by the next sell order entering the pit and if I decide it's not a good trade I can turn and sell the 31 bid. On the screen you can do what you like, there is no peer pressure, no one to keep happy. So an effective way to avoid paying the spread and to increase the likelihood of getting hit, is to place your bid one tick inside the current bid, or place your offer one tick inside the current offer. Of course you can't do this if the spread is only one tick wide. 23 The Pros and Cons of Stop Orders.

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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