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Hi, I just heard on the news that Wall Street banks are cutting bonuses for their traders due to low return as result of low volatility. I understand low volatility creates less premium for option sellers and less room for directional traders. However, what other ways do low volatility create...

OP doesn't seem to know much about basic economics/finance...

Thanks Maverick74. NG seems to be more volatile than CL.

I guess maybe there is a difference between leveraging on the account basis vs per contract basis. Per contract basis, you're right that the leverage is the notional value divided by the margin requirement. However, on the account basis, I think the leverage is notional value divided by your...

Thanks. Do you know if there is a place I can look up historical fluctuation of margin requirement of futures during volatile period? I want to see what's the worst case scenario if I see a spike in the margin requirement of my holdings.

The weather seems to be pretty cold this year compare to last. Is it overproduction or warm weather?

I'm bullish on bitcoin long-term so I'm taking a hold approach.

I understan I understand. If I'm correct, from the risk and reward perspective, the notional value matters. Holding one contract of CL at $57000 notional, with 2% up or down, it means $1140+- in your account. As traders, as far as I see it, we just need to worry about margin requirement and...

Your leverage of futures is the same with other product. If the notional value of your future position is the same as your account size, then you're using 0 leverage. If the notional value of your futures position is 2x of your account size, then your leverage is 2x. Am I missing anything?

Only take the weekend off:thumbsup:

Glad you had nice profit at NQ as well today. Like you, I'm happy with my gain today as I reached my profit target. I'm trying to stick to my trading plan and take small gains rather than waiting for big pops because 60pts pop is rare. There were days that NQ popped 30 pts and I took the...

/NQ popped 1.42% or 60 points. I took an early 20 points profits and made a nice profit. It is kind of painful to see leaving a lot of money on the table but I feel like the biggest mistake in life would be being to greedy.

I agree. The margin is way too high compare to other futures.

It makes sense as a hedge but not very useful for speculators due to carrying cost.

Thanks. I intuitively believe the mindset of what you described and not being greedy. However, it is just strange that everyone is preaching letting winner run and made me doubt myself.

For options. I trade monthly options. I do swing trades and exit as soon as I reach my profit targets. I find that it is much easier to turn winners into a losers when doing short-term trading.

Thanks. Do you think it is most appropriate to use "let the winner run" if one is doing fundamental investing rather than technical trading? If one's investing horizon is months and years, then I understand it makes sense to hold on to winner and let it run. One mind set I don't get in...

For short premiums, I exit 50% profit on Strangles and 25% profit on straddles. On Bullspreads, I exit 75% profits. On scalping, I exit depending on the instrument.

Wouldn't this be similar to betting on lottery where you're banking on a low probability event with a huge payout?

Thanks. For those that like stay longer in the trade to make a bigger profit, what about the opportunity cost? Your capital is tied up to the trade. For example, in the past two weeks, I had a notional value of turnover of 100 times of my equity. I was able to do this without taking crazy risks...