DAX Help Questions

It will open just as it were a new day. Limits are a common thing in all futures markets, they just do not happen much these days. Some people were unpleasantly surprised few months back when silver went limit down, apprently they did not even know that such things exists.
 
Quote from RedDuke:

It will open just as it were a new day. Limits are a common thing in all futures markets, they just do not happen much these days. Some people were unpleasantly surprised few months back when silver went limit down, apprently they did not even know that such things exists.
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No, some futures market don't have limits. If it opens as if it were a new day, it may have a big gap, so it appears we should close the positions before hitting the limits.
 
Hi, I too recently began trading the dax.
So far for about a month and a bit and it goes pretty well. Trading 2 cont right now. will add as account grows.

I have started trading it based on a mechanical system I devised which has a % Ratio of winning trades of 67% with a Win/loss ratio of 1.04 (Stop is same size as Target). Began testing from March 17 of this year.

this system would provide 1 trade a day. Rarely 2 , and sometimes none at all.

All in all 86 trades since March 17.

I only have half of march, and not much was happening . April, May, June were fantastic. July about breakeven, and August, a small winner. I hope I'll be having the April- June streak again soon!
:cool:
 
Hello all,

I’m new to this forums, so here goes :-D (i tried to post this in a seperate thread, but it didn't seem to want to apear??)

I am trading DAX futures, however I had a small question in regards to the DAX options that you can buy/sell and how they relate to the futures.

First off, When looking at the DAX options in IB, it says that the options ‘multiplier’ is 5. What exactly does this me/how does it work?
Second following on question; If I am long one DAX future, and I wanted to protect my downside risk, by buying an ‘At-The-Money’ (ATM) put option, what is the ratio needed to provide complete protection? (I realise that I will still have at risk the premium I paid for the option(s), but no more)
If I buy 1 future, and just 1 ATM put, that obviously does not seem to cover me completely and I will require huge overnight margins.
Is it 5 options to every 1 future contract I own?
Basically, I should be able to own DAX futures, and buy puts against them, and reduce any large overnight margins I have to a margin that is only the cost of whatever I paid for the put options ... no?
I am just wondering how the mechanics of it works, and the ratio of Options-to-Futures needed.
And I’d just flip the whole thing over if I were selling futures . . .

I may have a few more questions coming, but I was hoping that there would be somebody that may be able to help me out here with some info first . . . :-D

Thankyou kindly for your time,
Regards,
KJ
 
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