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Showing posts with the label Trading System of future and option.

What areTrading System of future and option contract.

Trading System. what is trading system.. In this chapter we shall take a brief look at the trading system of futures and options on  exchanges, including various types of orders. However, the best way to develop an  understanding of the trading system is to actually watch the screen and observe trading.  As stated earlier, futures and options are standardized contracts and like shares, they  are traded on exchanges. Paper Trading   Markets around the world can be classified into two main  types based on the methods of booking a trade namely an “open outcry” marke t and  the  “electronic”  market.   Open  outcry  is  the  way  of  communication  between  professionals on an exchange, which involves shouting, or using hand signals to transfer  information about buy and sell orders. In an open outcry markets, usually the trading  takes place in a large hall known as “pit” wher...