Futures Trading

For the last century or more futures were traded on the market floor by hand and telephone, during the last twenty years since the Internet has become a very viable source of communication a large percentage of futures trading is handled online and this percentage is only expected to increase in the coming years. Thanks to the web it is now possible to initiate and complete trades on any market from practically anywhere in the world. No matter whether you are trading in futures online or offline the same rules, regulations and laws apply for each of the individual markets and as specified by the CFTC or Commodities Futures Trading Commission. These regulations have all been enacted in order to protect both those who trade in the various markets and the markets themselves. Even with all of these protective measures, trading in futures still carries a certain element of risk as there are no guarantees that you will make money. Any time you become involved in futures trading you will have certain fee and costs that must be paid to your brokers or the brokerage firm you are going to use, this is where they make their income.

If you choose to trade electronically, you will not be working with a broker and as such will not incur the fees that you would be paying a broker; all of your trades happen online and are handled electronically. You will still have fees, but they will be significantly less. One of biggest benefits of trading in futures electronically is the speed at which each transaction can be completed. When you are dealing with highly liquid commodities such as EMinis, every second counts and can make a huge difference in the profits you can make. Trading online occurs as soon as you click the buy or sell button with your mouse, rather than waiting for your broker to answer your call and then calling his trader in the pit. By the time all of this happens the prices can have changed dramatically and you could end up losing instead of gaining. With electronic futures trading you simply place your orders in the order book, when a match is found your order is processed. Depending on which market you are working with, your order can be processed within one second of it being placed.

Electronic futures trading has leveled the playing field for the private investor who is competing with the trader on the stock market floor. Learning how to succeed in futures trading takes time and help from skilled traders that have been in the business for many years. At Pure Tick you will have access to training, information and trading rooms that are there to teach you how to make money in today's futures market. Led by highly experienced and skilled traders, you will learn how to be aggressive in your trading so that you have the highest possible chance of success. However as with any type of trading on the markets, you can lose money at any time and should never invest what you cannot afford to lose.