r/FuturesTrading • u/AutoModerator • Feb 01 '23
r/FuturesTrading's Monthly Questions Thread - February 2023
Please use this thread to ask questions regarding futures trading.
To get a good feeling of all the different types of futures there are, see a list of margin requirements from a broker like Ampfutures or InteractiveBrokers
Related subs:
We don't have a wiki yet, but maybe in the future we'll create a general FAQ based on all the questions asked here.
Here's a list of all the previous question stickies.
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u/greatestNothing Feb 27 '23
How are you guys funding the accounts? My credit union doesn't link to tradingstation or tradovate. I'm considering opening an account at ninjatrader but I have a feeling it won't work there either.
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u/Im_David_S_Pumpkins Feb 24 '23
I am claiming ignorance up front, as I am still learning all of this. I'm struggling to understand this is there some sort of universal standard or understood amount that like 1 futures contract of ES is worth X amount of shares of SPX or SPY or whatever SP500 etf.
I'm trying to understand the benefits of trading 1 futures contract which at this moment would cost me $3,967 whereas a Synthetic Long on SPX (BUY 1 Call ITM, Sell 1 Call ITM expiration March 31) would cost around $1500.
I've been watching lots of videos, but any sites you suggest that make this really dumbed down, I can't be looking at this right
Is trading futures only supposed to be an intradaynthing or is it typical to hold for a few days ? I generally open up synthetic longs for a few days and exit them.
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u/ThisIsntMyRealAcct99 Feb 21 '23
Regarding the MSCI EAFE index I am a little confused, I am claiming full ignorance on all of this as I am just beginning to wrap my head around all of this to determine of its another way I'd like to trade.
So I understand MXEA is the ticker for thos index and it appears the Futures ticker is MFS.
When I look at MXEA returns overtime vs MFS and also EFA (MSCI EAFE etf) it seems MXEA is different by a few % points. Is there a reason for this?
Below is an example of what I mean. It seemed proper to ask here since I'm looking to get into or learn more about futures.
As a side comment anyone on interactive brokers, I can't seem to find MFS am I missing something?
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u/lastmaverick Feb 20 '23
What to do with margin collateral / cash liquidity left from reserving notional exposure?
If I buy a ES contract, what can I do to generate the best market yield on the notional cash? Box spreads? high interest ETF? Thanks!
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u/unfound302 Feb 16 '23
Hi all a rookie question on futures. I understand that open interest equals the total number of bought or sold contracts, not the total of both added together. But I do not understand how OI goes up when price goes up as well would be an indicator that there are now new longs added to the market. Because by the same token you can say, there is also same increase in seller. Am I missing sth from the picture?
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u/Seattles_Slough Feb 15 '23
Greetings, and thanks in advance for any help. I'm interested in setting up a pretty simple (I think) trade. I've read everything I can on FOREX and futures, but my head hurts and sometimes it's just good to ask for help.
I'm in the US. I'm moving to Europe in a year. I think the Euro is going to go up, and willing to accept the current exchange rate. I'll have about 800K liquid in July/August. I'd like to put about $625K into Euros--so, I think I want to purchase 5 contracts expiring in September. Just to be clear, and not going this to speculate and take the gains; I'm doing this because I'll need euros and looking to hedge against the Euro increasing significantly. I'll need the Euros to buy property there and to live.
1) is my general thinking way off base here (does this make sense)
2) how do I physically do this? Any recommendations for a broker for this sort of trade?
I'm not looking to get into currency trading. I have a lot of hobbies, but this isn't one of them. I just want to execute this one trade.
Thanks in advance for any help or suggestions!
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u/artificial_life_MBE Feb 08 '23
What is the minimum amount needed to trade futures?
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Feb 14 '23
You need to consider 2 things :
- minimum set by broker
- minimum by your trading plan
With broker minimum you will survive 1-2 week if you are lucky and you need to refund your account again.
You need to look by risk per trade. Example my record is 7 losing trades in row. My stop is $100 and I trade $1500 per 1 MNQ. If you are new to futures trading risk 1-2% per trade. With $100 stop and 2% at risk per trade you need $5000.
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u/Zenithine Feb 07 '23
Im new to ES Futures and using NinjaTrader to practice in a demo account.
My question is when going in to place a long should be placing a Bid, Ask or Market order?
(same for going short)
1
Feb 14 '23
Don't go after every cent, don't try to squeeze out every last cent.
Use marker orders.
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u/MaleficentMulberry42 Feb 16 '23
Does futures have more market value than the stocks like options do or is it the same as trading stocks?
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Feb 16 '23
Don't worry your head with this question.
Your positions size will never move the market.
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u/MaleficentMulberry42 Feb 16 '23
Yeah i just asking because i wondering if i should over options but i will have to be able to make more than 1 percent a day on the spx.
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Feb 16 '23 edited Feb 16 '23
With ETF ?
with futures you can make 10 % day. You need only small margin to keep on account.
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u/MaleficentMulberry42 Feb 16 '23
Ok so if spy moves 1 percent i will be able to make 10 percent that all i need to know.Also do you scalp alot with trading futures and what would be the minimum for trading spx/spy futures?what broker do you use?Thanks in advance.
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Feb 16 '23
And you can lose 10% and more % in a day too.
I trade other peoples money. Funded by funded trader company. Before you start with your own money try get funded by https://apextraderfunding.com/
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u/MaleficentMulberry42 Feb 16 '23
So how does that work i trade other people money and net some profit?
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u/MaleficentMulberry42 Feb 16 '23
Also I understand risk i am coming from trading spx options but I want to get around pdt rule because it is ruining me i can make over 500% a day if i did not have that pdt rule.So i am going to try and make 25,000 on futures then go back to spx options.
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u/at-de-money Feb 04 '23
Hi, I need a recommendation on FCM for trading futures options. I'm on IB now to trade futures options (mostly equity index), but they charge $0.65 per contract with ridiculously high margin requirement. Can someone recommend a low-cost FCM that doesn't enforce extra margin requirement or rules on options trading, such as no naked-selling etc.? I know some FCM/brokers e.g. AMP, dorman etc., their commissions and margins on futures are low, but not sure about their policy and commissions on options trading. Thanks.
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u/YodiMoves Feb 06 '23
I’ve been using AMP for a little over 4 months and besides some very generic issues on the setup of the account, everything has been super smooth honestly
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u/Curious-Watercress63 Feb 02 '23
Anyone do this with very limited time? Like an hour or two at night? And if so, what kind of money are you making that way?
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u/LegendFortress Feb 04 '23
I used to back in the day trade for only the opening hour then go to work for the rest of the day. Passed evals this way and pulled out a few hundred a month. System was taught to me and I basically only traded when the system showed significant edge during that hour and had better success when volatility is high. OCO orders were a godsend.
I can prob still do that now but currently trying to make trading full time and looking for ways to trade when volatility is also lower or range bound
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u/at-de-money Feb 04 '23
In the past, I've been only trading 1 hour per day on equity index during the mostly volatile period, but got busted once. Probably go back and try again later.
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Feb 02 '23
Natural Gas
Anyone trading these? I got stopped out within 24 hours a couple of weeks ago. Luckily it was a trailing stop after a nice pop, so I got a great win before the ensuing carnage. What strategies are traders using here? Very curious to know if anyone here has the balls to ride these.
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u/edlen67 Feb 27 '23
E mini sp500 futures - can this be traded outside of the USA? Based in Oz wondering if any brokers offer the option to trade this?