Trade Market System for Commodity Exchange

Increase in the volume purchased and sold futures trade contracts also gave rise for the need to have a central place where this activity will be carried out. It was also desirable to have an eye on the trade transaction, that is all seen and heard to be able to participate in price competition and to eliminate secret shops. And so was born the Commodity Exchange, which is the world’s few. In the U.S., the largest commodity trade exchanges in Chicago, New York, Kansas City, Minneapolis and Philadelphia. The largest commodity exchange in the world is the Chicago Board of Trade (Chicago Board of Trade).

Commodity exchanges tend to specialize for example, stock exchange, which deals with corn futures, does not need to futures trading in silver or heating oil. This trade concept is different than the stock markets, where the mix of different stocks traded on fewer stock exchanges. Some commodities are traded worldwide (gold, silver, oil) and satellite communications and high speed computers allow to be known at the exact minute pricing information anywhere on other exchanges. The prices of the same commodity traded on multiple exchanges are not always exactly the same. For example, the gold price in Hong Kong, London and New York differ slightly, and any substantial difference can affect trader’s decisions whether to enter or exit the trade market with gold, or stand aside and watch the whole event.

Some global trade markets are so huge that the sudden drops or pump up prices on one exchange to another may not even pay attention at the end of trading day prices on all stock exchanges as usual like. Traders often watch the trade activity on other exchanges. Sudden price fluctuations can occur on any stock exchange and the reasons for price movements can be a mixture of different events and not events, because the reasons for price fluctuations can not be determined. Nothing will stop some nervous traders from buying as information or information and, if there is enough, the sudden and rapid action Gregarious instinct may cause a temporary rapid decrease or increase prices.

Decision traders may be based on weather forecasts, moon phases, political upheavals, reports on inflation, the gossip fire, world news, everybody something, or none of the above. Nobody said that it is simple trade.

The stock is moving several entities with different interests:
- The official observers representing the public on the stock exchanges and broker and monitor the activity of others
- Clearing trade banks are guarded by their brokerage firm
- Brokerage firms guarding the brokers
- Brokers police accounts of traders
- Traders monitor movements of their money

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Posted on February 10th, 2013 by admintrade
Filed under: Commodities, Trading | Comments Off

Trade Centers of Major Commodity Exchange

CBOT – Chicago Board of Trade
Chicago Mercantile Exchange. The Chicago Stock Exchange was officially established in 1848 a total of 83 dealers at 101 South Water Street. The first president was elected Thomas Dyer. In July 2007, the completed merger of Chicago Mercantile Exchange and Chicago Board of Trade, which was created by the world’s largest and most diverse exchange. More than 3,600 members/shareholders trade 50 different futures and options contracts on the CBOT both on open trade auctions, but also electronically. Trading volume in 2006 exceeded 805 million trade contracts, the highest annual total recorded in the history of this exchange. In the early history of the CBOT traded only agricultural commodities such as wheat, corn, soybeans, etc. Futures contracts on the Stock Exchange appeared years ago in order to include trading in commodities that can not be stored for a long time. In October 2005, the CBOT celebrated 30 years of the establishment of the first futures trade contract. Since then there have been many futures of many financial instruments, including U.S. Treasury bonds and notes (interest rates), stock indices, swaps, etc.

NYMEX – New York Mercantile Exchange
New York Mercantile Exchange. New York Mercantile Exchange is the world’s largest commodity trade exchange and a leading trading forum for energy and precious metals. Exchange is based on market and price transparency of unity after more than 130 years. Trading takes place through two parts, which are the NYMEX, a place for trading energy, platinum and palladium and the COMEX Division, where he traded all other metals. This exchange is a pioneer in the development of futures and option contracts energy, which happened 26 years ago in terms of price transparency and bringing risk management into the live market. What are traded? Traded wide range of futures and options contracts as oil, gas, gasoline, fuel oil, electricity, gold, silver, copper, aluminum, platinum and futures trade contracts for coal, propane, palladium, but also mini contracts available on the NYMEX miNYTM.

LIFFE – London International Financial Futures Exchange – (NYSE Euronext)
Name Liff was used for the London International Financial Futures Exchange, until taken over by Euronext in January 2002. Currently the exchange known under the name Euronext liffe. Euronext also subsequently merged with the New York Stock Exchange in April 2007. London Stock Exchange was founded in 1982 to transfer control of the currency used in Great Britain in 1979. The Exchange was created by the model CBOT (Chicago Board of Trade) and CME (Chicago Mercantile Exchange). Since the beginning offers trade futures and options contracts. In 1992 LIFFE merged with the London Traded Option LTOM Market – the London market warrants, which were added to stock options to a number of products.

Euronext
In January 2002, when it was taken over by Euronext LIFFE, there was a merger of stock exchanges in Amsterdam, Brussels, Paris and Lisbon. Along with the continental European stock derivatives was Euronext liffe. Some trade analysts say that LIFFE had to give up their independence because they were not able to absorb so much technological change in the extent necessary.

Trading on LIFFE CONNECT can trading platform with sufficient speed of execution and flexibility. LIFFE platform was developed to replace its business in open auctions on the dance floor.

TSE – Tokyo Stock Exchange
In 1878 arose Stock Exchange rules, on which was founded in May 1878 alone Stock Exchange. Forum is governed by the Administrative Board, which comprises 16 members and the executive trade officers are 8, altogether there are 775 people employed. Capital stock is the amount of 11.5 billion yen and registered shares is 2,300,000. Other bodies are the Nominations Committee, the Audit, Compensation Commission. TSE is a joint stock trade company that operates the stock exchange under the control of Prime Minister of the country. TSE was originally a member trade organization, but in November 2001 a joint stock trade company. TSE has offices in New York, London and Singapore.

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Posted on February 10th, 2013 by admintrade
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Trade Share Individual Development of the Course

The development of the course each share is an individual. However, it is possible to observe a typical course of the exchange rate and certain standard trade situations in which stock exchange may be. Daily courses closed curve, from which we can calculate the basic trade direction of development of the course. This direction is called a trend. Distinguish a trend upward, downward and constant. For example, rising rates investors are constantly buying, and growing demand for equities pushes trade stocks higher and higher rates. In response to this situation in the scientific community says that trend is your friend or speaks of the bull market.

Rate of all shares do not evolve in the same trade direction. Opposed development of some stocks may be caused by the growth phase of general courses such as the stock trade market extremely erroneous decision management company. Rate of shares of such companies are falling despite the fact that shares of trade companies operating in the same industry or landscape grow. Conversely, when the majority of the shares, which are traded on exchanges, weakens, some joint stock trade companies to execute or implement a successful restructuring of the emergency program focused on improving profitability. Shares of these trade companies have become attractive for investors. Increase demand for them to drive the share price higher.

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Posted on February 9th, 2013 by admintrade
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Stocks Trade as Financial Market Instruments

Stocks are certainly among the best-known financial trade market instruments. Itself shares an ownership interest in the property business, the trade company which has the status of joint stock companies. The registered capital of such trade companies can be divided into any number of shares. The owner of shares is the de facto investor. As an investor expects appreciation of his contribution, the property, either as the trade value of firm growth rates and thus increase the price of their shares, may also expect financial payment for the share of the trade profits from business owned joint-stock company – a dividend. Stock can be listed on the name of the person’s own (shares), or may be exposed to such trade security, property rights which performs the one who delivered it to the General Meeting of the trade company (bearer shares, the owner). Large joint-stock company under strict regulatory conditions may issue its shares publicly traded on stock exchanges. This is done mainly for the purpose of capitalization of the trade company.

Trade company gives its owners (shareholders) share of the property company. The rights and obligations of the owner of shares in addition to the Commercial Code regulates the Securities Act. The shareholder, in addition to other rights and the right to share in the trade profits of stock – on the dividend. Its height is determined each year with regard to the agreed profit general assembly composed of stockholders. The dividend is variable, with as distinguished from the shares of securities with fixed and regular trade income (savings books, term deposits or bonds). In years when farming stock trade company makes a profit, usually exceeds the dividend yield assessment instruments with fixed trade income.

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Posted on February 9th, 2013 by admintrade
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Forex Trade with Many Advantages

In spite of GCI trade platform can run your Forex trading with many advantages, including:
- State of the art trading software. Business software provides real-time prices in 20 major currencies, live charts and real-time P&L (Profit & Loss) and account equity tracking. We believe that this trading software establishes new standards in performance and reliability.
- Rapid and fair trade execution. Market trade orders are confirmed within seconds at prices clicked on or accepted by the client. In addition, there exchange offers a zero slippage guarantee for all Forex Stop and Entry Stop orders that are placed at least one minute before the trade market reaches your specified price.
- Zero fees. Client trading performance is enhanced by eliminating all fees and commissions. Charges for holding the (overnight) can be applied depending on the rate and direction of the margin trade position.

USD or Euro Denominated Trading Accounts. Clients can choose to fill out trade application if they want to have your account denominated in USD or Euros.
- Trading on 3 pip spreads. Clients can trade on tight spreads in major trade currencies and crosses, 24 hours a day. Spreads in the EUR/USD and USD/JPY are 3 pulses and other major currencies are 5 or less.
- Security Options. Clients can open positions in the same instrument in opposite directions, without the positions offsetting and without using additional margin.
- Our Products. You can also trade in gold, oil, S&P 500, DAX 30, Nikkei 225, and Dow Jones on the same trading platform – the same low margin requirements and zero fees.
- The risk is limited to deposited funds. It’s sophisticated margin and dealing procedures mean that clients can never lose more than their funds on the account.

Margin requirements and trade leverage:
Standard Forex Account: 500 USD per lot on all subjects. Equivalent to about 0.5% margin or 200:1 leverage.
Mini Forex Account: 50 USD per lot on all subjects. Equivalent to about 0.5% margin or 200:1 leverage.

Exchange is able to maintain these low trade margin requirements by enabling the automatic liquidation of positions when the margin call is reached. These policies also provide protection for the client’s account in the event of rapid price movement. A margin call is reached when the client’s trade account equity falls below the required margin. For example, a Standard Forex trade account, if a client has 10 contracts, a margin call occurs when, if account equity drops below 5,000 USD. In this case, some or all of the client’s trade position will be closed immediately at current prices.

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Posted on February 9th, 2013 by admintrade
Filed under: Currencies, Trading | Comments Off

Forex Trade as Typical Representative of OTC Markets

Forex trade is a typical representative of OTC markets, electronically traded the national currencies of countries based on market principles. Forex market is not common, they are other exchanges, has a center. It’s cash, inter-bank and inter-dealer market, which is connected online foreign exchange clearing center connected to the international, global electronic trade network. Highly standardized market for currency (foreign exchange) operates online 24 hours a week and traded via telephone and computer exchanges of market makers and brokerage trade firms.

Forex does not have a trade center. Traded via telephone and computer exchanges of market makers and brokerage firms. What is the Forex market compared with the classical exchange? International, global, electronic, highly standardized market for currencies, on-line 24 hours a day.

When trading in foreign exchange are no daily limits and no restrictions with regard to trading hours. This means that almost always will be an opportunity to respond to the movements of the major currency trade markets. In line with this there is less risk of being caught without the possibility of closing some of the positions. When trading in foreign exchange is shown by investors trading spreads (spreads), which offers shopping and retail store level. If the investor accepts the offered price and receive trade confirmation, trade is executed. No need to call on the stock exchange floor.

Standard Forex Trade Account
Minimum to open account: 2,000 USD
Value of one lot: 100,000 USD
Margin requirement: only 500 USD per lot
3-4 point (pips) spreads in major currencies and cross currencies

Mini Forex Trade Account
Through the portal, you can e-exchange in addition to its Standard Forex Account Mini Forex trading accounts as well with smaller contracts, and thus smaller margin requirements.
Minimum to open account: 500 USD
value of one lot: 10,000 USD
Margin requirement: only 50 USD per lot.
3-4 point (pip) spreads in major currencies and cross currencies

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Posted on February 9th, 2013 by admintrade
Filed under: Currencies, Trading | Comments Off

Trade Commodity Futures as Financial Derivatives

Commodity Futures are financial derivatives, which enter into the futures trade contract on future delivery of a particular commodity at a future time according to precisely defined rules between trade market participants, among which are primarily suppliers and producers of these commodities, or their customers or consumers. While equities are traded on thousands of basic commodities is less than a hundred. The most traded and most liquid commodity is then less than twenty. This enables better understanding and more effective use, especially fundamental information from trade markets to implement profitable speculation investors in these markets substantially prevail.

Trading commodities is now entertainment and jobs for millions of individual traders who are fueling the price movements of individual commodities. Particularly popular is online trading, which enables merchants to realize their speculation on the price development of attractive commodities, such as the stock indices, financial commodities, energy, metals, or agricultural products. Very efficient access to financial markets CFD instruments that allow investors to speculate very efficient development of selected commodities price without the merchant entered the ownership of this commodity and the common trade complications that are part of trading commodity futures.

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Posted on February 7th, 2013 by admintrade
Filed under: Commodities, Trading | Comments Off