I'm basic and have a question about CL

Quote from Crude Man:

Question for /CL pros?


If I have $25K and I'm trading 18 contracts at a time on intraday margin, what would I owe my broker on interest for using that margin?

I have read the warnings from the pros here about maxing intraday margins, but, there is a possibility of a profit to be made, correct? The dollar amount in the profit or losses would be similar. If I made $360 profit on a 0.02 cent move then I could also lose $360 on a 0.02 move against me correct, or could the losses be more?

Also, do sizes like 18 contracts draw market makers to trigger your trail stops, anybody experienced this? I read a thread here where someone said its real but wasn't sure if this dude was being paranoid.

Thank you Elite Trader nation, my first post. I hope to learn, and trade for a long time.
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Would someone answer my question above please? Many Thanks.
 
Quote from Crude Man:

Would someone answer my question above please? Many Thanks.
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You don't understand how margin works in futures, which is basic, and yet you want to be trading with 18 cars, on a $25,000 account.

You're not accounting for commissions or slippage, but you want to be scalping for 2 cents?

Going out on a limb and assuming (sigh) that you're not a troll, you need to do some basic reading, either buy a book or go to the web pages of the exchanges - or both. Then trade 1 car in a simulator. Repeat as necessary. <i>Then</i> ask questions.

Good trading to you.
 
Quote from Picaso:

You don't understand how margin works in futures, which is basic, and yet you want to be trading with 18 cars, on a $25,000 account.

You're not accounting for commissions or slippage, but you want to be scalping for 2 cents?

Going out on a limb and assuming (sigh) that you're not a troll, you need to do some basic reading, either buy a book or go to the web pages of the exchanges - or both. Then trade 1 car in a simulator. Repeat as necessary. <i>Then</i> ask questions.

Good trading to you.
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I have read quite a few books and online entries on Futures Trading but cannot for the life of me still understand FUTURES INTRADAY MARGINS.

Picaso, please, in simple english:

What is the gravest danger of trading 18 cars on a 25K account? If I lose 0.01 on 1 trade then I'm down $180 right. But if I profit 0.01 then I'm up $180? Is it that black and white or are there other losses I can incur using margin but I'm not talking about slippage or my trail stops not being executed and losing 35 cents on a trade.

Thank you buddy!

Please help a newbie to make the market more liquid.
 
Quote from ashantt:

or for you! but you probably wouldn't have the cojones to ride it up so fast.
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What are you talking about? That doesnt make any sense. And I dont trade inventory numbers because I am not a degenerate gambler.
 
Quote from Crude Man:


What is the gravest danger of trading 18 cars on a 25K account?
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The gravest danger is getting stopped out a million times a day trying to scalp 18 cars for a few pennies. Stop it.
 
"The gravest danger is getting stopped out a million times a day trying to scalp 18 cars for a few pennies. Stop it."

Amen, brother.

You can't scalp a market with 30% volatility with narrow stops. If 30-year Bonds have a volatility of 11%, and the old floor trader stop rule was three tics there in that market, then it stands to reason that CL would require a ten tic stop-loss level for scalping.
 
Scalping CL just seems stupid to me. Several times a day it'll give you a 20cent+ move you can ride. Those moves dont just come out of nowhere. If you think they do come out of nowhere you arent ready to trade CL with real money yet. Nothing wrong with that, just keep practicing.
 
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