Futures and options trading group


Everything about a futures contract is standardized except its price. All of the terms under which the commodity, service or financial instrument is to be transferred are established before active trading begins, so neither side is hampered by ambiguity. Futures contracts are traded at a futures exchange and only at a futures exchange. There are currently eight futures exchanges in the U. The price of agricultural commodities fluctuates, foreign exchange rates change from minute to minute, interest rates and equity indexes rise and fall.

Nothing stays the same. And that's why futures are so useful and so essential to business operations all over the world. The study of the factors that affect supply and demand. The key to fundamental analysis is to gather and interpret this information and then to act before this information is incorporated into the futures price.

This lag time between an event and its resulting market response presents a trading opportunity for the fundamentalist. This approach to price prediction is based on the premise that price movements follow consistent historical patterns. Those who engage in technical analysis study charts or statistics that measure price movements and try to find repetitive patterns. They start with the basic bar chart that plots high, low and closing prices of a futures contract over the life of the contract.

Current activity is watched carefully for familiar patterns of price movement. Orders in the Pit: A futures brokerage firm "house" that is a member of Chicago Mercantile Exchange CME places orders to buy or sell futures or options contracts for companies or individuals and earns a commission on each transaction. The company became a global leader in the application of computer technology to listed derivatives trading. Hull developed a proprietary and large scale reliable distributed system architecture, providing automatic real-time pricing, risk management, market making and interconnection with automated options, futures and stock exchanges as they became available.

Hull Trading Company's massively scalable software technology was deployed to cover both domestic and international markets as electronic, on-line exchanges became available, while innovative hand-held computer technology was employed at exchanges still requiring execution by floor traders. The firm grew to over employees including financial engineers, physicists , almost software engineers and computer support staff.

Hull Trading was primarily an equity options market maker. The firm employed complex mathematical models to analyze short-term options and equity pricing discrepancies while hedging against overall risk exposure. It employed mathematicians and physicists to design algorithms and a large number of software engineers to implement systems based on these algorithms.

The company was a leader in the application of computer technology to listed derivatives trading. A proprietary and large scale reliable distributed system architecture was developed by company programmers, providing automatic real-time pricing, risk management, market making and interconnection with automated options, futures and stock exchanges as they became available.

Hull's massively scalable software technology was deployed to cover both domestic and international markets as electronic, on-line exchanges became available, while innovative hand-held computer technology was employed at exchanges still requiring execution by floor traders.

The company's proprietary technology allowed it to execute tens of thousands of transactions daily. The company was also known for its emphasis on teamwork and democratic pay structure, in which employees awarded each other bonuses.