Future Markets
How They Work

In the future markets the frantic shouting and signaling of bids and offers on the trading floor of a futures exchange undeniably convey an impression of chaos. The reality however, is that chaos is what futures markets replaced. Prior to the establishment of central grain markets in the mid-nineteenth century, the nation farmers carted their newly harvested crops over plank roads to major population and transportation centers each fall in search of buyers.

The seasonal glut..... was one of the reasons for the creation of a future markets. The seasonal glut drove prices to giveaway levels and, indeed, to throwaway levels as grain often rotted in the streets or was dumped in rivers and lakes for lack of storage. Come spring, shortages frequently developed and foods made from corn and wheat became barely affordable luxuries. Throughout the year, it was each buyer and seller for himself with neither a place nor a mechanism for organized, competitive bidding. The first central markets were formed to meet that need. Eventually, contracts were entered into for forward as well as for spot (immediate) delivery.....and the future markets where born. So-called forwards were the forerunners of present day future markets contracts.

Spurred by the need to manage price and interest rate risks that exist in virtually every type of modern business, today's futures markets have also become major financial markets.

Participants include mortgage bankers as well as farmers, bond dealers as well as grain merchants, and multinational corporations as well as food processors, savings and loan associations, and individual speculators.

Future market prices..... arrived at through competitive bidding are immediately and continuously relayed around the world by wire and satellite. A farmer in Nebraska, a merchant in Amsterdam, an importer in Tokyo and a speculator in Ohio thereby have simultaneous access to the latest future market-derived price quotations. And, should they choose, they can establish a price level for future delivery--or for speculative purposes--simply by having their broker buy or sell the appropriate contracts. Images created by the fast-paced activity of the trading floor notwithstanding, regulated future markets are a keystone of one of the world's most orderly envied and intensely competitive marketing systems.

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Want to learn how to day trade the future markets?

Successful floor trader Malcolm Robinson tells his story. Find out how he went from losser to winner. Learn his system for trading S&P, Mini and other indexes. Then use his bar-by-bar trading simulator to practice trading in the future markets.

============== Future Markets Price Simulator ============

Should you at some time decide to trade in the future markets, either for speculation or in connection with a risk management strategy, your orders to buy or sell would be communicated by phone or computer from the brokerage office you use and then to the trading pit or ring for execution by a floor broker. If you are a buyer, the broker will seek a seller at the lowest available price. If you are a seller in a future market, the broker will seek a buyer at the highest available price in the same future market. That's what the shouting and signaling is about.

In either case, the person who takes the opposite side of your trade may be or may represent someone who is a commercial hedger or perhaps someone who is a public speculator. Or, quite possibly, the other party may be an independent floor trader. In becoming acquainted with futures markets, it is useful to have at least a general understanding of who these various market participants are, what they are doing and why.

Future Markets Broker.... not sure which commodity broker is right for you....contact my friend Derek. He can provide you with any level of service you need, his rates are fair and the service for all the future markets is excellent. Just send him an email with your name and phone number....he or one of his friendly brokers will contact you and answer any and all questions you may have. email Derek

There is risk in trading future markets. Options, Stocks and Commodity trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in Stocks, Futures, Options and Commodity markets. Don't trade with money that you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell in the future markets, Futures, Options, Stocks or Commodities.risk disclosure