Futures trading online – the history, part 1. Lewis Borsellino – a legend in the world of futures – more than 18 years experience trading futures SP 500 in his book “Day-trader – the blood, sweat and tears of success’, describes the benefits of trade SP 500 futures compared with the shares of: ‘Firstly, the volatility makes it possible to make a profit on Few chersah quickly. I do not know of any speculator who buys 8 & P contract and derzhavschego him for five years. Second, performance bonds or the margin is for one 8 & P contract, $ 16,000 (Profit – now have the opportunity to trade e-mini sp500 futures – where the margin of 1000 per unit), while the contract itself controls shares worth $ 250,000. It’s not something that 50-percent margin required to trade individual stocks. Besides the offensive electronic trading reduces the commission.
In monetary terms, they are still much higher for stocks than for futures owls. Buying 100 shares at $ 10, rated which cost $ 1,000, the investor can cost from $ 7 to $ 20 a charge GOVERNMENTAL. And for a commission of about $ 10 for a complete revolution – and buying and selling – the investor can trade 8 & P contract value to $ 250,000. (Profit – strange, but despite the fact that Lewis wrote this 10 years ago, conditions remained almost the same – an average commission of $ 10 per lot) In addition, futures trading allows speculators there use leverage to engage in a much larger positions than possible positions on shares that can be opened using their existing cash. In futures trading with the introduction of the order party immediately becomes part of the market. When someone wants to make a deal with shares, he (or she) must first call the broker.
After that, a brokerage house to decide whether he will occupy opposite direction with opposite this transaction. (Not to be confused with JPMorgan Chase!). The growth of the online stock trading has changed the situation. There is a clear demand for system, providing individuals with direct access to the market. Orders can be entered and executed without the participation of a broker. Why else would the online broker E-Tgade Ggour Inc. (Profit – yeah, that’s where feet grow – because this is now the most powerful agent of America! The most optimal conditions for just them 3 months without any commission, committee, and then 2.99 dollars per lot) and investment bank Goldman Sachs Group LP agreement to buy 50 percent of Archipelago LLC in a situation where it was rumored about this $ 50 million deal? Archipelago operates the system, which allows Day-traders to enter their orders on shares of NASDAQ) in electronic form through its network of electronic communications (Electronic Communication Network, ECN). With ECN, deytreyd get EASURES Professional access to NASDAQ, bypassing the broker. Futures markets can now learn a lesson from this on-line revolution in stock trading. Electronic access can easily attract more participants, especially individuals who have capital and a desire to sell … ‘Profit – well, it just happened.