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A Bit Of Background On The Futures, And Commodities Market

Online trading in futures, commodities and forex (foreign exchange) potentially connects you to all the big money centers over the world. They include the LIFFE in London, UK, the CBOT in Chicago, USA and the EUREX in Frankfurt, Germany. A good starting point to is to know about and understand some of the history of futures trading, in New York, Chicago, London and the other great centers. The history goes back to 1971, when the floating exchange system was first created.

Before 1971 the then currencies were largely fixed to the dollar. The CBOT was opened in 1974 to oversee financial derivatives trading. The centers of Forex trading and futures trading have grown larger and more diversified over the years.

Major, international, inter-bank trades, and even the activity of governments have determined the value of currency trades. The shift to online stock and Forex trading came about in 1996, with advancements and major improvements in PCs and the Internet at that time.

Online trading can focus more specifically on a handful of stocks, and it look for the proper triggers and patterns that set off the major trading action. Various trading gurus have methods to choose Stocks on Steroids and even give you the list of stocks that they themselves are trading now.

You should also know if you are considering trading that you can get some of the stock data you need for free. Yes, a lot of the stock data that people pay big bucks for is available on the Internet, with a small amount of processing and work to obtain them.  Have you ever gone to finance.yahoo (a free site)?  This is a site that can be used to plug stock history data into a MS Excel table, and then draw a chart? Of course that is information you need to obtain on a daily basis, but there are also other sources.

The trading day starts in Wellington, New Zealand. A few hours later it kicks in Dubai, in the Persian Gulf. A few hours after that Frankfurt, Paris and Rome start. Then London, later New York and Chicago, and finally the U.S. West Coast open for business. No matter where you live or whatever work hours you do, you can usually find time to do some Forex trading somewhere in the world that suits your time availability.

The Forex market is the biggest daily market, with about $2 trillion a day being traded. The profit potential is truly breathtaking, because Forex is the perfect instrument to leverage. Yet a lot of smaller traders overlook this. Currency trading takes place in large financial markets. It is not exactly going to the local store or even supermarket to buy some vegetables.

Even though 12 million people in the world trade currency, there is no such thing as saturation.