Trading for Living
- Introduction to US Index Futures
- Understanding the Indexes
- The S&P 500 Index
- Fundamental Analysis
- Technical Analysis
- Medium Term Trading Strategies
- Long Term Investing Strategies
- Trading Psychology
- Money Management Techniques
- Trading Systems and Platform
- Legality and Taxation
- Building a Trading Plan
- Final Project and Course Wrap-up
Trading Systems and Platform
Understanding the Trading Platform
Software for trading financial products.
A trading platform is a software application that serves as the conduit for trading information between a trader and their broker. It provides information such as quotes, charts, and includes an interface for entering orders to be executed by the broker. Trading platforms are frequently offered by brokers either for free or at a discount rate in exchange for maintaining a funded account and/or making a specified number of trades per month.
Features of a Trading Platform
Trading platforms come with a variety of features. Here are some of the most common ones:
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Charts: These are graphical representations of market prices over a set period. They are the most important tool for technical analysis.
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Indicators: These are calculations that are displayed on the chart, used to forecast financial or economic trends.
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Order Types: These are instructions that traders give brokers to buy or sell securities. There are several types, including market orders, limit orders, and stop orders.
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News Feed: This provides traders with real-time news that can impact markets and, therefore, trading decisions.
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Automated Trading Capabilities: Some platforms allow traders to set specific rules for trade entries and exits, which, once programmed, can be automatically executed via a computer.
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Account Management: This allows traders to fund accounts, withdraw trading profits and perform other account-related tasks.
Customizing Your Trading Platform
Most trading platforms allow customization. This means that you can set it up to suit your trading style and preferences. For example, you can usually choose which indicators to display, customize the colors and styles of your charts, and choose which types of news and data feeds to display.
Popular Trading Platforms for US Index Futures
There are several popular trading platforms that traders use for trading US index futures. These include:
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MetaTrader 4/5: This is one of the most popular trading platforms in the world. It offers advanced charting capabilities, automated trading systems, and a wide range of tools for technical analysis.
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NinjaTrader: This platform is popular for futures trading. It offers advanced charting and analysis capabilities, as well as automated trading capabilities.
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TradeStation: This platform offers sophisticated analytical tools for tracking markets and making trades, and its programming language allows you to design and test trading strategies.
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Interactive Brokers: Known for its direct market access to global exchanges and low-cost, high-speed order execution.
Remember, the choice of a trading platform can depend on a variety of factors, including the specific features you are looking for, the fees charged by the platform, the type of trading you plan to do (day trading, swing trading, long-term investing, etc.), and your personal comfort with the platform's user interface.