Algorithmic Trading Group Forum
https://www.algotradinggroup.com/cgi-bin/yabb2/YaBB.pl
Trading Strategies >> General Discussions About Strategies >> How does futures trading work ...?
https://www.algotradinggroup.com/cgi-bin/yabb2/YaBB.pl?num=1301669323

Message started by Ricky Johnson on 04/01/11 at 15:48:42

Title: How does futures trading work ...?
Post by Ricky Johnson on 04/01/11 at 15:48:42

I understand how the stock market works, but not how futures trading differs in the buying/selling process.

Can anyone suggest me about this.......??

Thanks a lot .

Title: Re: How does futures trading work ...?
Post by Co0olCat on 04/01/11 at 23:04:44

Hi,

It is similar to equities trading, but there are several specific aspects. You will need to look up initial and maintenance margins. All bookings and accounting are centered around it.
Second, since it is a standardized contract to deliver good there is a maturity or expiration time. Since trader does not want to have physical delivery of goods (currencies are exception) with open position and approaching maturity date trader will normally roll to the next maturity. Say, with long position one would sell current position and buy next maturity. The trigger for rolling could be either fixed date or OI or Volume or combination of both.

With all these extra aspects one would ask - why to bother with commodities?

Normally one would find low correlation of commodities to equities, ability to go long and short without restrictions and ability to gear.

Thank you.

Kind regards,
TY

Title: Re: How does futures trading work ...?
Post by bethneyfisher on 05/20/11 at 10:19:25

Future trading is the currency exchange business.In this you have to trade on one country currency with other like USD and CAD.You have to keep up to date with the current ratio of two currencies.There is no physical goods to purchase in forex trading.It is simpler than stock market.
_____________________________
For More Information Visit: Share Trading and Forex Trading

Title: Re: How does futures trading work ...?
Post by Scott Webster on 06/10/11 at 13:56:41

To me this would be problematic for security reasons.  I wonder whether AI would open up the door for virus AI, that would be a horrible though.

Algorithmic Trading Group Forum » Powered by YaBB 2.2.2!
YaBB © 2000-2008. All Rights Reserved.