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ON-LINE TRADING LESSONS
Lesson 15 — GLOBEX
Overview
The GLOBEX Trading System is an international, automated, order entry and matching system operated by Reuters for use the Chicago Mercantile Exchange(CME), the Marche a Terme International de France (MATIF) and other exchanges that may join the system. GLOBEX links hundreds of terminals together into an instantly interactive, world-wide network.
GLOBEX is widely recognized as a user-friendly method of extended-hours trading. It facilitates a 23-hour trading day for CME futures and options; trading on the system begins shortly after, and ends shortly before, Regular Trading Hours.GLOBEX trading is backed by the experience, integrity and Clearing House strength of the CME, which has the largest open interest of any futures exchange in the world.
GLOBEX is a marketplace where risk managers can easily and quickly adjust their clients’ portfolios. It allows all participants equal access and nearly continuous price discovery. For example, GLOBEX provides the ability to trade S&P 500 futures contract before the cash market opens. Thus offering an efficient means of hedging portfolio risk.
The CME lists its major financial futures and options contracts – some of the most liquid in the word – for trading on GLOBEX. Every CME financial product group is represented: currencies, interest rates, and indices. Cross-exchange trading also is available, enabling members of one exchange to enter orders directly through GLOBEX terminals for the products listed by another exchange.
The GLOBEX network currently extends to three major time zones, covering 12 financial centers (new locations may be added based on user demand):
Bermuda
Boca Raton
Chicago
Geneva
Hamburg
Hong Kong
London
New York
Paris
Singapore
Tokyo
Zurich
More than 420 GLOBEX terminals are now in operation, up from 320 terminals in mid-1994. No matter where a GLOBEX terminal is located, traders are ensured a level playing field and an average three-second or better response time.
On-Line Trading Lessons — Courtesy of the Chicago Mercantile Exchange
Futures trading is highly speculative, and can involve the loss of some or all of any monies you may commit to such trading.
No responsibility is assumed for the use of material available at this web site, and no express or implied warranties are made. Futures trading is highly speculative, and can involve the loss of some or all of any monies you may commit to such trading.
This material has been prepared by a sales or trading employee or agent of Dallas Commodity Company and is, or is in the nature of, a solicitation. This material is not a research report prepared by Dallas Commodity Company's Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.
The risk of loss in trading commodity futures contracts can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. You may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain a position in the commodity futures market.