Why futures?

[Mpoufos]

Hi all,

Just a short question; I am fresh graduate, willing to enter the trading sector etc. I am wondering why there are so many prop's trading futures and not forex or stocks for example especially in London. So a question of mine and a favourite interview question is why futures?

Thanks

 

[Robertral]

Hi all,

Just a short question; I am fresh graduate, willing to enter the trading sector etc. I am wondering why there are so many prop's trading futures and not forex or stocks for example especially in London. So a question of mine and a favourite interview question is why futures?

Thanks

Are you talking about why to trade futures instead cash/spot????

 

[Mpoufos]

Why Futures

Are you talking about why to trade futures instead cash/spot????

Hi robertal,

Yeah I am actually asking whats the advantages of the futures markets over the other markets and why they are preferred so much by prop's firms. For ex. lets say i ve been interviewed from 10 different props and they all trade currency futures. Is it the right place for a graduate to start and if yes, why is that?

Thanks

 

[TWI]

It is because these shops evolved as a result of LIFFE's change from floor to screen. A lot of them are run by x-locals or companies who had a large floor presence. There are plenty of prop shops in London trading the other products they are just not running the same business model for grad recruitment schemes.

 

[Robertral]

Hi all,

Just a short question; I am fresh graduate, willing to enter the trading sector etc. I am wondering why there are so many prop's trading futures and not forex or stocks for example especially in London. So a question of mine and a favourite interview question is why futures?

Thanks

The reason why most companies trade futures is due to a thing called Leverage....look it up.......
Why put down 100% for the trade when you can put down less than 100%.....

 

[Mpoufos]

Ok guys I get the clear picture. Thanks all for your comments