Working with futures and options, especially in the commodities markets, requires precision, timely information and accurate analysis. Trades transacted within a split second capitalize on a price change. Then decisions are made that require information not only on a stock's daily performance, but its' past performance as well. For many businesses, this information is difficult to keep track of. Those businesses need futures and options data vendors.

An options market data vendor monitors all of the markets so that you don't have to. They offer software that tracks each account while calculating the unrealized gains and losses from those options, producing a record of the option's performance along the way. Futures market data vendors offer the same up-to-the-minute data on more than one market and gather historical information on a future that's vital to the stock's performance. Futures data vendors even have software to make each transaction run seamlessly. When looking for information about futures market vendors or data vendors for options remember to:

1. Choose futures and options data vendors that are knowledgeable about your market;

2. Learn about the software and services available through futures and options market data vendors;

3. Educate your staff on using the software and services.

Action Steps
The best contacts and resources to help you get it done

Choose futures and options data vendors that are knowledgeable about your market

Agricultural commodities traders need to stay updated on the things that effect their investments. This includes weather reports, technological advancements as well as the prices of the commodities. Obviously, futures market data vendors who specialize in the silver market are irrelevant to the agricultural trader. To ensure that your business has the most updated and useful information, choose a data vendor to fit your specialty.

I recommend: Futures data vendor, Infinity Futures, services companies in the metal futures commodities market with data specialized for that market. Companies like ExpressFutures.com provide data on several markets that you can tailor to your own needs.

Get familiar with software offered through futures and options market data vendors

Information about market data vendors is abundant. However, you can do the job in-house with available software, saving you in cost.

I recommend: DTN provides affordable data analysis software for small businesses. Software such as CQG Trader organizes data while analyzing in a simple, custom format. OptionsXpress has tools to help you monitor your futures and options data in real-time.

Educate your staff on using a futures and options data vendor's software and services

Information is only as good as the person interpreting it, so give your staff the knowledge they need to utilize the market data. Several companies provide training and information for beginners as well as continuing education and breaking industry news for seasoned professionals.

I recommend: INO has videos, articles and interactive tools to aid everyone from the novice trader to the professional. Software developer, Peter Hoadley, offers calculators, excel add-ins and much more to assist in analyzing the options market data. The software comes with learning tutorials and demos. The Chicago Board of Trade offers several educational courses online and off. Global-Investor's Financial Conferences search site can locate training sessions worldwide.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Futures and options data vendors are plentiful, so take the time to find the right resources to help you interpret that data for effective use in your business.