Online Futures Trading

Written by Jacey Harmon
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Online futures trading has many benefits for a futures trader. Before we get into a discussion about the benefits of online futures trading let's briefly discuss what futures trading is. Futures are a contract to sell a selected commodity at a specific time in the future. There are three major areas of futures trading, commodity, financial and index futures. Futures trading involves trying to make a profit on daily price fluctuations of different futures contracts.

Benefits to Online Futures Trading

For a futures trader there are benefits to trading online. A very attractive benefit to online trading is the fact that your order is routed directly to the exchange floor. The quick placement of your order will speed up the time it takes for an order to be executed. This allows a trader great flexibility in placing orders and ensures that a quick trader will not miss out on a move.

The lack of the human chain interaction increases the overall efficiency of your trading program. It also reduces the risk of something going wrong when your money is on the line. Online brokers will typically have lower commission costs than full service brokers. One thing to keep in mind is that a full service broker may be a good option for a new futures trader. The personal interaction of an experienced futures broker can help educate a new trader.

For new traders who want to capitalize on the benefits to online futures trading but do not want to use a full service broker there are options available. There are a wide variety of trading services available to help new and experienced traders with futures trading. The fees involved with a trading service combined with discount commission can often still be less than a full service broker.


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