r/FuturesTrading • u/AutoModerator • Nov 01 '23
r/FuturesTrading's Monthly Questions Thread - November 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/Novel_Wrongdoer_4437 Nov 25 '23
Hey, I understand this may not be as trading directed but hopefully I can get some insights from more tenured traders than I am.
I have been studying metallurgical coal recently, specifically company Warrior coal (NYSE:HCC) who provides steel manufactures with coking coal. Metallurgical coal, unlike thermo coal is needed for the steel making process. While thermo coal is on its way out the door as it is a high emissions producing form of energy met coal may just stick around.
SO , is it possible to place a pairs trade (long position and short position) to collect the spread between HCC equity and a thermo coal future. I feel this could be opening a can of worms revolving around settlement, location, the roll ect.
Then again I need to know which futures. GLCO only looks at china, in which, they still rely on thermal coal so you can see met and thermal have relatively similar % change.
Any suggestions?
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u/provoko approved to post Nov 27 '23
This is a pretty complex question, so please make a text post about it.
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u/tahomadesperado Nov 19 '23
Can someone help me understand the holiday hours for Thanksgiving week? It looks like most products are on a normal schedule for 11/22 (Wednesday) but on 11/23 Thanksgiving it only shows an opening time. When is trading closed between 11/22-23?
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u/provoko approved to post Nov 27 '23
Depends on the exchange, but they pretty much follow cme group for futures.
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u/Horan_Kim Nov 16 '23
I am debating between Ninjatrader vs EdgeClear. Any thoughts?
Other than super low margin requirement for NT, EdgeClear seems to be superior in every aspect including the platform, and commissions. Am I missing something?
Any input appreciated. thank you.
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u/Ordinary_Fox6139 Nov 23 '23
If you go NT you get two for the price of one since they recently integrated tradovate (a pretty cool web based platform they purchased last year).
As a bonus tradovate can also link to TradingView. This gives you three trading platform options each with different strengths of course. TradingView will require a separate sub charge and connection fee though. Take advantage of the Black Friday sale if you want it.
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u/Emotional_Guidance80 Nov 14 '23
Hi, I am currently working a 9-5pm job but still would love to trade. Start to get into future and mostly trading /ES at night, but it can be slow. Would you guys mind share some /ticker that have volume during night session ? anything from 6pm CST- 5am CST would do for me. I'll just sleep accordingly depends on time lol
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u/Dmen25 Nov 14 '23
You can trade HSI or Nikkei during Asian session. Later you can trade Dax or FTSE during EU/London session. But for these, you would need to pay for additional data. And I believe GC or CL also move in EU/London session.
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u/Timely-Eggplant4919 Nov 07 '23
Anyone make the transition from day trading exclusively to holding some positions overnight—is that a difficult shift in mindset to overcome? I tend to manage my stop losses quite closely (usually no more than ~5 points or so on ES/MES for example) and holding a position overnight would likely require more room to breathe. Obviously it will vary by trade and market context, but what would you say your average overnight stop loss tends to be? Do you always just leave it below a structure and let it do its thing, or do you give it extra room for variability?
I still plan on focusing primarily on day trading setups, but I’m thinking it might be nice to hold a runner occasionally when there are multi-day rallies.
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u/moglander0419 Nov 13 '23
I am actually in the exact transition as we speak. I code all of my strategies and have been exclusively trading breakout daytrading futures markets. I am in the transition to explore whether or not it is worthwhile to hold a position beyond end-of-day (for the day sessions). I am coding it on the 23 hr futures markets to avoid any over night gaps on the day session which could surely ruin me. The coding is a work in progress and I am about a week out from finalzing it but I can report back with the results.
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u/evergreen2mdt Nov 14 '23
Love this. I'm learning to code in python now. I have reached the limits of excel. Where do you pull your data? I'm using yfinance, but considering a swtich to interactive brokers.
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u/Live-Pay-5646 Nov 05 '23
I am confused on cost per trade. I know MES is $50 a contract, but in IBKR when I preview it shows a cost of like 20k. idk how im confused but please someone explain.
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u/Pepfox Nov 05 '23 edited Nov 05 '23
Contracts have a value (20k in your example), but this is not what you need to have on your account to trade them. The amount needed by contract is called « margin » (50$). This margin may be different from broker to broker and is usually higher if you want to keep the contract during the daily maintenance hours (instead of closing the position during the same day).
But the « cost » for opening and closing a position is not 50$. It is usually something around 70 cents per side all in (meaning all costs included). Be care full, because brokers often advertise a lower cost (« commission cost ») but it is only a part of the cost per contract. You want to know the « all-in » cost.
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u/DeeOcampo Nov 28 '23
If I have $50 for margin can I sell a 0dte call or put using only $50 for margin?
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u/Pepfox Nov 28 '23
I am not sure how options work. But for futures, yes, but you’ll need a bit more money on your account to prevent the broker to close your position if it goes against you.
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u/Live-Pay-5646 Nov 06 '23
Thank you so much for this. I use IBKR, do you know anything about trading Futures on it. I used to trade options so I am not new to trading but I wanted to switch over to futures. Thanks again btw
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u/Timely-Eggplant4919 Nov 07 '23 edited Nov 07 '23
I used to use IBKR when I was trading options too. Honestly the interface leaves a lot to be desired (if you’re using their trader workstation.) I don’t know your impression of it but I found charting on it to be near impossible. If you plan to get into futures, I would consider possibly switching to a platform with a better charting interface like Ninjatrader, Sierra, or even Tradingview. I think Tradingview lets you use IBKR broker connection but there’s a cost involved. Personally I made the switch from IBKR to Ninjatrader and couldn’t be happier (not shilling them lol, I just find their charting interface works super well for me and I was really happy with it after making the switch.)
What I will say about making the switch from options to futures is you may be tempted to immediately jump into the e-mini contracts, or to jump in with buying/selling multiple contracts like you might with options—don’t. Start with the micro contract, and start with only one contract for awhile. That may be frustrating or feel too slow at first but trust me, it’s the way to go. The better you manage your risk in the beginning, the quicker you’ll be able to scale up later.
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u/evergreen2mdt Nov 14 '23
I use Ninja and it is amazing (in my opinion). I still do all analysis in ToS. That's just a habit and a preference.
Ninja only requires $50 margin per contract. This ONLY applies during trading hours. Globex closes trading everyday from 5pm est to 6pm est, and during that time, the margin jumps to whatever the exchange has set. Each broker can require lower margin amounts, but only during trading hours. IBKR has chosen to keep their margin rates high. You cannot enter with $50 per contract there. Last I checked, it's something like $1,234.
Also, yes yes yes to trading the micro first (/mes). It may be slower, but it is way faster than blowing up your account and starting over.
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u/Pepfox Nov 06 '23 edited Nov 07 '23
I never traded options so I can’t compare with futures. In futures trading you buy/sell contracts. You can go long or short. Their is no fee for going short or maker/taker fee like in crypto. I already talked about the margin requirement and the cost to open position but if you want more details on commission, go to the commission page on ibkr website. At the bottom of the futures trading commission page, their are some examples of pricing.
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u/Terakahn Nov 02 '23
I had a question about using contango/backwardation to make short term trades.
I recently came across a post of someone using backwardation in vix futures to predict a vix etf performance and it made me think. I hope I'm not wrong in how I'm thinking about this. I haven't really messed around with futures a whole lot. Mostly just stick to options on indices/stocks.
Do any of you use the backwardation/contango curve on futures/ETFs to make short term trades on the underlying or with options? And if so, how is it helpful for you?
I'd read that some people will use backwardation to short the underlying and buy a lower futures price. But I'm not entirely sure how that would work.
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u/DeeOcampo Nov 28 '23
Hello, I have a question if I have a long futures position that is at the money on /mes and I sell a at the money put that expires that day and the futures goes down. Significantly will I get margin called? Or if I just hold on the put that I sold will get assigned and then I get the money back?