In the past, the global futures trading landscape was reserved
for professional traders who had access to capital and technology
to enable them to execute trades across a diverse range of markets.
Typically, this included traders from professional firms and investment
banks who had the necessary expertise, infrastructure and information
networks. In recent years, global futures exchange trading has gained
greater participation from the retail market as the playing field
has been leveled by technology and service providers that provide
access to global markets at a realistic cost.
The internet has created a new breed of online brokers who have
created order entry platforms, charting packages and interface with
data feeds to bring access to global financial trading irrespective
of where you are located. Time considerations play a role in the
dispersion of activity but with global futures trading taking place
in the United States, Europe, London, Singapore and now, to a limited
extent, China, traders now enjoy greater liquidity and access to
a diverse range of products. With the Eurex Exchange recently establishing
a hub in Dubai, this region is likely to experience growth in the
years to come.
The internet and the popularity of global futures trading has also
resulted in the growth of proprietary trading firms that employ
traders to trade global markets. Companies operating out of Singapore
and Australia employ traders that participate in global energy trading
and markets in Europe, Asia and the United States. Twenty four hour
trading is now a reality for keen market participants who work through
the night. These companies employ a diverse range of strategies
ranging from discretionary to automated black box systems. New recruits
are sometimes trained on a simulator to perfect a winning approach
before risking the firms capital.
Traders who want to participate in global futures exchange trading
can do so by establishing an account with a firm such as Interactive
Brokers. With access to over 70 international markets, you can establish
data access privileges and take positions in global markets. You
can use the web based trading platform or download the desktop Java
version. There are many third part software vendors that support
the Interactive Brokers data feed so traders that are keen to develop
their own trading systems can do so.
You can also get setup to use the simulator to become comfortable
with order entry and market movements.
Next Article: Learning
Futures Trading
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