Online Futures Trading
Software
With web-based online trading software you can trade futures from any computer that
has Internet access. Simply connect to the Internet and you are away! Trades
are made through a platform housed on a secure server of
a futures broker's website. No download or special
set-up is required.
Alternatively, you can download trading software onto
your own computer. Due to not relying on internet
connection speeds, the software usually runs more
quickly and smoothly if you download it in this way.
On either platform, quotes are usually live
and free although you need to press a refresh button to update them.
Streaming
quotes usually require a subscription fee, plus exchange fees that can vary
between $15 and $100/month per exchange. If you trade many different futures markets, you
may need to pay four or five exchange fees if you want streaming quotes or
live chart facilities.
Simulated trading is
often available on
online trading platforms.
Online Trading Experience
You should receive order fill prices in real-time. Fills are sent to your
screen via a pop-up fill notification box as
soon as the fill is received. In some instances, fills can be returned in 1-3
seconds. Some exchanges take longer than others. CME and CBOT fills are
usually received within several minutes of an entry/exit level being hit and
the order being filled. The New York exchanges are notoriously slow and you
may have to wait an hour or more to get your fill notification.
For ease of use, most online futures trading platforms use color-coding. For example,
buy orders are displayed in blue, while sells use a red font. Similarly,
market quotes use color-coding to indicate whether a quote is positive or
negative. The various order-entry modes are designed to fit various trading
conditions. For example, a user watching quotes for a given market can
instantly create an order by simply clicking on the quote once the market
reaches the desired price. Or, a user can easily summarize open positions and
liquidate any one of them by simply pointing to and then double-clicking on
the position in the position screen.
Other Trading Articles
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Forex vs. Futures
Which should you trade? Forex or futures? Or Even Options on
Futures?
Futures and Options
Read our article describing the pros and cons of trading
futures with options
Online Futures Trading
An outline of the choices available when choosing an online
platform
Futures Trading Method
Day trading, tech, fundamental analysis
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