What is futures trading?

Futures trading provides investors with a fast and cost-effective means of accessing global financial and commodity markets. Investors can speculate or hedge on the price direction of the particular security or instrument they're trading. This is done by purchasing a futures contract.

What are the benefits of electronic trading?

The commissions are lower in electronic trading, but a good relationship with the right people on the floor can more than compensate for the commission savings. In the end, electronic trading has too many benefits. Perhaps the biggest benefit of all is the exchange consolidation and economies of scale created by electronic platforms.

What is a futures contract?

Investors can speculate or hedge on the price direction of the particular security or instrument they're trading. This is done by purchasing a futures contract. A futures contract is a legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.

What are the different strategies for futures trading?

All strategies have ups and downs, but you should decide which one you want to go with and define it for your futures trading. The most common strategy is directional strategy, which means that a trader speculates on the direction of a specific commodity or other underlying assets.