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Futures emini S&P
- Thread starter joaaquinn
- Start date
don't count on the auto liquidation to cover your limit losses, it works all the time day in day out,but there is an small outside chance that say you are long eminis at 1320 and like atticus said there is a dirty nuke to the market, all the sudden there are no bids, the auto liquidate will try to sell at market and depending on what ever bid was not pulled,you will be filled at that price and if it is below the value in your acct, you will have to pay the differenceQuote from joaaquinn:
To hold the contract more than one session do you mean that when you buy an hold the position until next day? If so, I plan to close my position in the day.
Yes I have read about margin call and for that reason I was a concern if I can finish with a debt of 60000 of so in the worst scenario.
Any advise on which online broker should I choose? I do not plan to start now, but I want to start investigating this.
Thanks
Joaquin.
Quote from atticus:
The risk of going debit is very low. If you're paranoid then I suggest sticking to SPY calls and puts. Penny markets and you can't go debit and the vol-risk will be reasonable intraday. Stick to the 30-60 day options. A two lot ATM is roughly equivalent to 100 shares SPY.
The July 132C went out at 3.30 mid today. An *ATM* ten lot is roughly = one lot ES futures-delta. $3,340 debit with commission. You're inherently long vol in an outright long call or put, so somewhat protected from a blow-up of the debit paid.
Atticus, you say that the risk is very low so I understand that a possiblity exist. So, let's continue with the example that is not real because i haven't done anything yet. I open an account, 5000 margin. Trade each day, close the position each day. Hold the position as long as the trend continue and finish by stop lose in the case the trend breaks.
Lets supposed that I loose 100 points, 5000 . Let's sopposed that something happens, i forgot to put a stop loose, the internet connection drop, anything else.
My account balance will be 0. If at that point I decied that I do not want to risk more I can close my account with the broker without any kind of debt?
Amount are just examples.
Thanks
Joaquin
Quote from ammo:
don't count on the auto liquidation to cover your limit losses, it works all the time day in day out,but there is an small outside chance that say you are long eminis at 1320 and like atticus said there is a dirty nuke to the market, all the sudden there are no bids, the auto liquidate will try to sell at market and depending on what ever bid was not pulled,you will be filled at that price and if it is below the value in your acct, you will have to pay the difference
Ouch.
Yeah I didn't mention that in my original reply. It's possible, but not very likely, especially if you don't hold overnight.
Quote from Dura:
I was under the impression that PDT only applied to equities.
About the PDT, are guys saying that I cannot trade e mini SP with an account less than 25K?
If I executes more than three day trades within 5 trading days my account will be flagged and frozen for about 90 days. A day is concider for example a day in which I do two trades or this count as two day trades?
I want to test small first, and then I can increase to 25K when I´m confortable.
Thanks
Joaquin
no, atticus was just giving you a synthetic allternative using SPY options, in which case yes you would be subject to PDT, but as so many astute posters pointed out, you are exempt when trading futures.Quote from joaaquinn:
About the PDT, are guys saying that I cannot trade e mini SP with an account less than 25K?
If I executes more than three day trades within 5 trading days my account will be flagged and frozen for about 90 days. A day is concider for example a day in which I do two trades or this count as two day trades?
I want to test small first, and then I can increase to 25K when I´m confortable.
Thanks
Joaquin
A lot of your questions will be answered when you set up a simulated account. Whichever online broker you choose will offer one. Some require to open an account first, others will let you paper trade for free.