Chapter 6 Getting Started in Trading Futures
Chapter 6 Getting Started in Trading Futures
The Role of the Broker Many of the problems that occur between broker and client arise from unrealistic client expectations
The Role of the Broker ◼ Many of the problems that occur between broker and client arise from unrealistic client expectations
How to Find a Good Broker A broker makes money when you close out a position. The more a client trades,the more profit for the broker. Commissions are the lifeblood of the futures market and the brokerage business
How to Find a Good Broker ◼ A broker makes money when you close out a position. ◼ The more a client trades, the more profit for the broker. ◼ Commissions are the lifeblood of the futures market and the brokerage business
Rules for selecting a Broker 1.The novice. 2.The experienced short-term trader 3.The long-term trader 4.The independent trader
1. The novice. 2. The experienced short-term trader 3. The long-term trader 4. The independent trader Rules for selecting a Broker
A Good Broker Should Answer the telephone quickly and take your order promptly and professionally. Place your order directly to the trading floor, and not through another party. O Report order executions to you promptly. O Execute your orders with a minimum of errors
● Answer the telephone quickly and take your order promptly and professionally. ● Place your order directly to the trading floor, and not through another party. ● Report order executions to you promptly. ● Execute your orders with a minimum of errors. A Good Broker Should