Futures Options Simulator/Demo

[candymr2]

Anyone know of a simulator/demo that lets you trade options on futures? I need one that will calculate margin requirements for the trade, and also being able to execute the trade in the demo. Thanks in advance! -Ted

 

[tomhaden]

For futures, you might want to try the PFG simulator. Free for 30 days.

http://www.pfgca.com/

 

[momoneythansens]

You might want to look at opening a paper trading account with Interactive Brokers.

MoMoney.

Quote from candymr2:

Anyone know of a simulator/demo that lets you trade options on futures? I need one that will calculate margin requirements for the trade, and also being able to execute the trade in the demo. Thanks in advance! -Ted

 

[Aardvark]

Hey mo...I'm still trying to understand what the advantage is to trading options on futures? I have my hands full trading options on the vanilla's

 

[MTE]

Quote from Aardvark:

Hey mo...I'm still trying to understand what the advantage is to trading options on futures? I have my hands full trading options on the vanilla's

SPAN margining, i.e. risk-based margining, is the main advantage of options on futures as opposed to index/equity options, which are rule-based margining.

By the way, options on futures are vanilla as well.

 

[Aardvark]

thx

 

[yip1997]

Quote from MTE:

SPAN margining, i.e. risk-based margining, is the main advantage of options on futures as opposed to index/equity options, which are rule-based margining.

By the way, options on futures are vanilla as well.

MTE,

Can you give an example of SPAN margin calculation? Is the SPAN margin lower than the index option?

I have been trading IWM options for a while, and will like to take a bigger position to move to either Russell 2000 index option (10 times cheaper in terms of commission) or Russell 2000 future option? However, I don't know how future option works (I never traded future). Can we apply the same trading strategies in all these 3 instruments?

 

[candymr2]

Quote from momoneythansens:

You might want to look at opening a paper trading account with Interactive Brokers.

MoMoney.

Thanks!


yip1997 --- Yes, SPAN margin requirements are MUCH lower than regulation T margin.


Example:

ES JUL2006 1200P -100 CONTRACTS $-31,188.33
ES JUN2006 1200P +100 CONTRACTS $10,534.21


NET PREMIUM $20,654.13


DAY MARGIN
=========

INITIAL $ 13,357
MAINTENENCE $ 10,830

OVERNIGHT
========

INTIAL $ 27,000
MAINTENENCE 21,659.00