Getting Stopped in CL

P

PIZZ

Hi everyone, noob question here so please bare with me.
If I trade 1 contract of CL ($1000) and each tick = $12.50 does that mean that it would have to move 80 ticks against me for me to be stopped out of my position?. Im assuming 12.50 x 80 =1000? Is this correct?
 
Each tic is $10 USD, and if you are a "Noob" you just wandered into the adult swimming pool.

Please choose to learn how to trade in a venue where you don't piss away $50K before you learn how to survive.
 
Im just looking to trade 1 contract. I've only swing traded before so am looking for someone who can give an expert answer in this area please. thanks
 
Performance Bond Margin (Initial):

LIGHT SWEET CRUDE OIL FUTURES (NY-CL) - Tier 1

Spec

$6,750

$5,000

Hedge/Member

$5,000

$5,000


Surely you have looked at Daily trading ranges and historical vol, right ? Not to mention that you have a trading system with backtested drawdowns, No ? Who would possibly risk capital without knowing ...
 
Quote from PIZZ:

Hi everyone, noob question here so please bare with me.
If I trade 1 contract of CL ($1000) and each tick = $12.50 does that mean that it would have to move 80 ticks against me for me to be stopped out of my position?. Im assuming 12.50 x 80 =1000? Is this correct?
More...
All your needed information can be found here:

http://www.cmegroup.com/trading/energy/crude-oil/light-sweet-crude_contract_specifications.html

You will get stopped out when you account equity hits maintenance requirement for the contract, in this case 5k. If you are trading using a daytrading futures broker, like Mirus, you will be stopped out when you reach their daytrading margin threshold (ex Mirus: margin is 1k/contract for intraday trading. If your account balance drops below that, you will be stopped out). If you only have 1k to trade, you will not be able to trade CL. Look at QM instead. Since you apparently do not understand the product (as seen in your tick cost above) you need to trade on a demo first, otherwise this is just a useless discussion.
 
My error in the typing I do know its 10.00 not 12.50.

I've been paper trading the CL on a demo account using a strategy and am doing quite alright. Im just not clear of the actual limitations with margin.

How much in your account would you need to trade 1 contract?
 
Quote from PIZZ:

My error in the typing I do know its 10.00 not 12.50.

I've been paper trading the CL on a demo account using a strategy and am doing quite alright. Im just not clear of the actual limitations with margin.

How much in your account would you need to trade 1 contract?
More...

If daytrading, ask your broker.

For example, OEC is currently @ $3375 on daytrading = for every $3375 in your account, you can trade 1 contract (that's using max margin).

Each tick is worth $10, so you can do the math from there on what a stop will cost you.
 
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