what is direct access trading?

[tommog]

what is direct access trading

Please could you tell me a bit about direct access trading?

What is it? (is this how the pro's trade in arcades?)
Does it work on a SB basis whereby you make money on every tick in your chosen direction? How much money do you need to open an account?
Can you trade indices?

errm, think thats about all the questions i have but i would appreciate you helping me out

many thanks

 

[Skimbleshanks]

To put it simply, DAT (direct access trading) is where you place your order electronically and it goes direct into the market to get filled. It's more common in the US than in the UK, so consequently most of the brokers originate in the US.

Everyone can trade using it - you just need to use a DAT broker such as Interactive Brokers, PFGBest, or any one of the hundreds out there. You can't trade indices, only the underlying futures. So you can't trade the Dow but you can trade the Dow emini futures (ticker YM).

I'm sure others will be able to tell you more.