Futures Intro & Platforms Flashcards
What are the stages that the order passes through from you (The client), especially when you place it?
When you place an order in your broker’s platform, it goes to a Data feed, then a routing service, then lastly to the Exchange.
Some examples of Exchanges depending on what you trade, please?
- SXP500 = CME (Chicago Mercantile Exchange)
- DAX40 = Bund (Eurox)
What’s an Order routing service?
It’s a service to ensure the order you place in your brokerage platform, reaches safely to an Exchange in an orderly manner.
What’s a Data feed service?
It’s a service that takes data (or data packages) from the exchange & sends it to your platform.
What’s a Broker?
A service platform that you interact with on a daily basis for the purpose of depositing your trading capital, access the markets, withdrawing your profits or losses, and administrative services related to your account.
Recommended Services by NV:
Brokers: Dorman Trading, AMP futures, Interactive Brokers.
Data feed: Sierra, CQG
Platform: Sierra
Order Routing: TT & CQG
How long does a Futures contract last?
It depends, but typically between 1 to 3 months then they expire.
What happens when a Futures contract expires?
You have to roll it over in your charting platform. Also, it’s trading volume decreases, while it increases on the immediate following futures contract.
What does zero (0) in Sierra Quotes board mean in an asset?
It means that that Futures contract has already expired, or it’s way too far of interest right now to the investors.
Which futures contract expires every month?
Crude Oil futures contract.
What does a very thin volume profile in a DOM mean?
It means that there are a few market participants. And, it might be caused by either:
- An expiring contract
- Illiquid asset
