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When a futures contract is traded on the floor of the exchange?
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Who profits from futures trading?
The main people that profit from futures trading are the hedgers and speculators. The hedgers are the producer of the commodity who trades a futures contract to protect himself from changes in prices in the future for his product. A speculator is the independent floor traders and private investors that buy the contract and sell it for higher price.
Why investors need to trade in commodity futures trading?
The advantages of futures trading, according to "Online Futures Trading - Advantages and Disadvantage" by Tim Wreford: Leverage. Futures operate on margin, meaning that to take a position only a fraction of the total value needs to be available in cash in the trading account. Commission Costs. Electronically traded futures contracts require no human intervention to match buys and sells unlike a traditional futures pit. This means that commission costs can be cut dramatically, leading to significant savings for the frequent trader. Liquidity. The involvement of speculators means that futures contracts are reasonably liquid. However, how liquid depends on the actual contract being traded. Electronically traded contracts, such as the e-mini's tend to be the most liquid whereas the pit traded commodities like corn, orange juice etc are not so readily available to the retail trader and are more expensive to trade in terms of commission and spread. Ability to go short. Futures contracts can be sold as easily as they are bought enabling a trader to profit from falling markets as well as rising ones. There is no 'uptick rule' for example like there is with stocks. No 'Time Decay'. Options suffer from time decay because the closer they come to expiry the less time there is for the option to come into the money. Futures contracts do not suffer from this as they are not anticipating a particular strike price at expiry. Automated trading. Electronic futures brokers offer the facility to programmers to interface directly with their trading software. This means that custom written trading software can automatically trade a strategy without any human intervention at all. A system can make buy/sell signals which are automatically routed to the exchange along with any stops and targets. Almost instant fills. With electronically traded futures there is no need to call up a broker and wait for a fill from the trading floor. Orders are instantly placed on the electronic order book and filled as soon as a match is found - for liquid contracts such as the emini S&P500 this will be within a second. Level playing field. With traditional pit traded futures the professional in the pit has a major advantage over the retail trader in terms of speed of execution and costs. Electronic futures trading offers all participants exactly the same advantages.
What is the Mercantile Exchange?
The Mercantile Exchange refers to a large commodity futures exchange run by CME Group of Chicago. The company's two main divisions are NYMEX (New York Mercantile Exchange), and COMEX (Commodity Exchange, Incorporated). NYMEX manages billions of dollars in metals, electronics, energy products, and many other commodities that are bought and sold on their building's trading floor, and their overnight electronic computer trading system.
Who do you have to speak to for a floor cleaning contract?
Someone that requires their floor cleaning.
When did women start working on floor of the stock exchange?
Women started working on the floor of the New York stock exchange in the late 1960s. Muriel Seibert became the first woman who was a member of the New York stock exchange in 1967.
Which stock exchange has a trading floor called the Garage?
businness
What does the term trading floor refer to?
The term trading floor refers to a place where financial trading action takes place. Trading are found in places such as The New York Stock Exchange and The Toronto Stock Exchange.
What are individuals who are employed by brokerage firms that are members of the exchange are called?
floor brokers
Define foreign exchange?
Foregn Exchange is the terms that use in converting one currency to other currency with in a floor or counter permited by authority of Government Agencies.
How many trading posts are on the floor of the New York Stock Exchange?
20 trading posts
Where can you get gloves in RuneScape?
You can get gloves from the grand exchange, or questing, or even on the floor. it depends what kind of gloves you want.
Is Carl Quintanilla still with msnbc?
No. He is with CNBC and broadcasts live from the New York Stock Exchange floor.
