Questions to futures traders

[klarklar]

I have some questions to the experienced futures traders on this forum, if any. I have never bought a futures contract myself.

May I ask which are the contracts that you trade? Why did you choose them? Why trade futures and not stocks?

 

[alexchia01]

I have some questions to the experienced futures traders on this forum, if any. I have never bought a futures contract myself.

May I ask which are the contracts that you trade? Why did you choose them? Why trade futures and not stocks?

You can trade agriculture, energy, indices, currencies, metals and bonds.

Personally, I trade E-Mini Dow Jones Futures.

Why choose Futures?
Because they treat their client fairly.

Futures is a much better trading product than stocks.

I don't trade stocks, but I do invest in them.

 

[nashlin]

I do trade US indices Options and mainly indices such as e minis of SPX and Nasdaq.

I don't really hold the underlying but jus the options contract.

Spx futures are value 50% of the actual SPX. Meaning if it is currently 2470, the futures only value 1235 of it.

I used to love spx but now I'm also into nasdaq futures because it has higher IV than spx. Higher IV means higher premium

Any why futures because I can trade 24/7 on weekdays. I don't have to wait till market opens at sg time 10.30pm to start.

Also, futures is more capital efficient if you trade longer expiry. Eg. a credit speed that cost $1000 margin on normal IRA account can now be traded at perhaps $500.

 

[klarklar]

Why choose Futures?
Because they treat their client fairly.

Great advice! I have been doing some research and I agree with you. Futures are much better than than CFDs because Futures are regulated.

 

[klarklar]

I do trade US indices Options and mainly indices such as e minis of SPX and Nasdaq.

I don't really hold the underlying but jus the options contract.

Spx futures are value 50% of the actual SPX. Meaning if it is currently 2470, the futures only value 1235 of it.

I used to love spx but now I'm also into nasdaq futures because it has higher IV than spx. Higher IV means higher premium

Any why futures because I can trade 24/7 on weekdays. I don't have to wait till market opens at sg time 10.30pm to start.

Also, futures is more capital efficient if you trade longer expiry. Eg. a credit speed that cost $1000 margin on normal IRA account can now be traded at perhaps $500.

Trading longer expiry makes financial sense for big players. For small players, I think trading the front-month makes more sense. The liquidity and smaller spread will beat roll-over costs, if that is what you mean by more capital efficient when trading longer expiry.

 

[supratentorium]

I trade futures on the cme intraday. Currently trading crude, gold, 2 currencies, copper. I do flip to natural gas or soy meal sometimes. Why futures on cme? They are liquid and movement is governed by supply and demand and they give me nice charts that i can make sense of and nice swings i can capture with a reasonable stop. Comparing a random stock out of 1000s and comparing to the front month crude intraday, which do you think you would rather trade?

 

[guiguy]

Why trade futures and not stocks?

Speculative
Can go long or short.
Highly leveraged. eg $1 move on eMini Crude (QM) generates $500 profit (or loss)
'Cheap' trades if you use US brokers
Liquid, efficient not subject to manipulation (or less)
US Tax Capital gains tax benefits 1256 straddle

Cons
Derivative Margin trading, you can lose your shirt pretty quick, gobbles up capital if your trade goes awry.
Has expiry date. Although you probably wont take physical stock, you may be forced to liquidate and/or roll over which could result in reducing your trading capital.

 

[Shiny Things]

I have some questions to the experienced futures traders on this forum, if any. I have never bought a futures contract myself.

May I ask which are the contracts that you trade? Why did you choose them? Why trade futures and not stocks?

So I'm not a wildly experienced futures trader, but I've chucked it around a bit in my PA in rates, FX, and commodities futures and options.

The reason I trade futures and options is because I want the specific exposures that I can only get from derivatives. If I want to make an explicit punt on AUD volatility, I can buy AUD straddles on the CME at vol spreads that are even tighter than I used to get on the interbank market. If I want to bet that the Fed will hike faster than the market implies, I can just sell eurodollar or FF futures and get the exact exposure I want. If I want to bet on the Brent/WTI spread converging (this one was quite good to me a couple years back), I can bet directly on that.

 

[tiertime]

Anyone knows what platform can we use to trade futures? i currently using CMC Markets but i not sure if there are better ones out there?

 

[Rainforestkk]

futures broker

Anyone knows what platform can we use to trade futures? i currently using CMC Markets but i not sure if there are better ones out there?

hi all,
i use TD ameritrade. but would like to know anyone use Sierra Chart? or Market Delta?

would like to know if any one from SGP here use these? please