The GFT trading challenge – a global trading contest for new and existing clients with a $50,000 cash first prize – starts today. And the succesful trader who scores the biggest percentage gain over the coming three months, wins.

GFT says that the trading challenge aims to do two things; firstly, bring traders across the globe in contact with each other using a variety of social networking tools, and secondly, to give top traders a platform to strut their stuff.

Aussie traders can trade CFDs and forex over stocks, indices and commodities, and will be pitted against traders from Europe, Asia, and the Middle East. In the US, traders are restricted to trading forex only.

GFT will award three cash prizes: $50,000 for first place; $25,000 for second place and $10,000 for third place.

Since traders must use their own funds in the contest – requiring a minimum deposit of $3,500 to enter – the contest is for experienced traders that trade according to a well-rehearsed trading plan and are not vulnerable to overtrading their account.

 

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Indeed, the nature of the competition is for top traders to share ideas and strategies across a global forum – and is therefore not suitable for unskilled traders with little more than lady luck on their side. Gary L. Tilkin, president and CEO, GFT says: “This is the type of competition that will bring traders out into the mainstream and give them the full recognition they deserve as they see how their skills match up against other traders.”

Clearly catering for the more active trader, contest participants must place at least 20 trades every 30-calendar days for the duration they are in the contest. And according to GFT’s contest terms and conditions, a trade is defined as any order that results in the opening or closing of a position (not including roll) with a 100,000 lot size for forex/forex CFDs, or the equivalent volume for other forex lot sizes, and US$10,000 notional value for non-forex CFDs.

Contestants can track their position against fellow traders worldwide on a leaderboard, which is updated daily. Additionally, traders who follow GFT’s Twitter will be entered to win weekly prizes to the value of $3,000.

The GFT Trading Challenge runs until April 30, 2010 (ET). You can visit the official “GFT Trading Challenge” website for more details.

Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products, which are leveraged, can carry a high level of risk, and may not be suitable for all investors.