What Is An Online Trading Platform

Dot com. If anyone started investing in the 1990’s, this era, truly marked a revolution in trading.The rise of the web technology made it possible for anyone around the world to create business and enter into the futures trading market and onto the futures trading platform. With the first inception of futures trading, the process was cumbersome with various steps to acquire a decent trade. The trading waltz would first start out with the commodity trading calling the broker and eventually the broker would call to the trading floor. After the trade was eventually completed, then the clerk would inform the broker and the client with the fill.  The lines were extensive, when all you have to push is a button and it says: trade or update. With the boom of the dot.com era, the landscape shifted astronomically in the financial industry. With an online trading platform (a software program that allows traders to interact electronically and submit trades, eventually through their brokers), the learning curve is long and razor sharp, but it does allow you more freedom of choice.

Online futures trading varies in scope and size. For example, you can start small with $1,000 to $5,000; which is great for a new trader, but if you hit a string of horrendous trades, at a loss of $1,000/trade, you’re already looking at how to leverage your account. How does this relate to online futures trading? This highlights two key factors in coming to the right decision of a sound futures trading platform: speed and execution. Firstly, speed is probably the most important factor of a futures trading platform. Simply put knowledge is admirable, but if it cannot be accessed quickly, it can cost you a great deal of money, time and sleep. In addition, execution, is the backbone of speed, in that, with a full-proof futures trading platform, whether data is real-time, or a summary of the days or weeks’ trades, how it is relayed to your account is key in helping you make a good business acumen and trade decisions.

Being a well informed tradesman on your futures trading platform is key to your success in the futures market. For example, an online futures trading platform, may offer, free real-time quotes, if you pay a substantial monthly fee, along-with broker’s fees. Or, another could offer a flat-rate fee, and provide you with real-time data. Choosing an online futures trading platform, is like choosing a great dance partner. Look at the height (are they too big, or are they too small), the frame (are they solid, to where they can lead you to financial success), or are they lean (cut corners in order to maximize, pay attention, their profits. Most importantly, the feet (can they move). These are the essential characteristics, to weigh, because, once you begin trading with the wrong partner, your money could be gone, before the final note is played. All-in-all, charts, are a necessity, because they give you snapshots of your position in the market, real-time and if the futures trading platform is stalwart, possibly into the future.  Do your research, check out varying platforms, because like all dance partners have different ways of interrupting a ballet, so do brokers, when it comes to investing in the futures market.

Futures trading platforms are best understood when used. This means, you have to simply put your dancing shoes, and join the financiers waltz. One key term that will keep you afloat and in step with trading, is futures margin. Own this phrase and understand its two principled branches. There is the initial futures margin, and margin maintenance. All futures margins are set, by futures exchanges (I.E. NYMEX, ICE, and TOCOM). When you first hear of initial futures margin, just think of the money needed to open your account with a broker, to buy or sell with a futures contract.  Margin maintenance, is needed to help retrieve funds when your position falls below (loss of funds on trade), your original starting position. Both of these work in tandem in order to avoid the margin call. This call is a request to allocate more funds, once your position has fallen below the maintenance level. Consequently, you always have the option to close on a futures trading platform.

Overall, the world today is dominated with apps, Smartphones, and watches; we have entered into another dot.com blitz to the top. With online trading, there is no secret formula, each model is different. The learning curve is steep, without the guide of a future broker, but once you’ve have mastered the trading over time, it can be beneficial. Online futures trading platform, are only going to improve. One of the most important avenues with your online futures trading platform, is to dance with it and play. After all, it’s your trading platform, own it.

Check out the list of some of the online futures trading software platforms offered by Cannon Trading. Browse through and see which may be best suited to your futures trading needs.

Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors.  Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.

Article written by

I am a freelance writer

Leave a Reply