Is there a way to avoid settlement in futures...
- Thread starter ocean5
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Hi all.Thanks for your replies.Maybe I didn't get the message through,but what I wanted to know was how to avoid the daily settlement period,at the end of the RTH,not contract rollover.
Every day,before the closure of the RTH there is a settlement period at15:45 EST,so if the price of the instrument you hold lower your paid price,you are getting "reset" with the settlement price and debited to that difference.In other words ,if you are under water by the time of the settlement period,you automatically lose that difference.I guess there isn't any way to avoid it in futures.It's a bit not fair.Why should I lose that difference if I'd like to hold further?
Every day,before the closure of the RTH there is a settlement period at15:45 EST,so if the price of the instrument you hold lower your paid price,you are getting "reset" with the settlement price and debited to that difference.In other words ,if you are under water by the time of the settlement period,you automatically lose that difference.I guess there isn't any way to avoid it in futures.It's a bit not fair.Why should I lose that difference if I'd like to hold further?
as far as I know, last I checked, they can't prohibit you from moving from Alberta.
otherwise, in the broad scheme of things, over the long run, futures are a little cheaper than spot.
so you can thank your elected officials for saving you a few pennies (or whatever you call them up there)
otherwise, there is probably a JPY etf that you can buy that will probably suit your needs better if you are in it for the long haul.
I forgot, are you trying to get long JPY or short?
either way
Very difficult to hold futures longterm, whether it is stocks, bonds, oil or currencies. They are all priced so the carry just about kills you.
very difficult to make money in commodities without leverage, and that's all JPY is, just another commodity.
If I was living in Alberta, I would be more interested in ags, since apparently, that is where global warming is headed.
well, it's not just at the end of RTH, every minute of every day you have a position on you are getting "marked to market". Nothing unfair about that, that's just the way it works.Quote from ocean5:
Hi all.Thanks for your replies.Maybe I didn't get the message through,but what I wanted to know was how to avoid the daily settlement period,at the end of the RTH,not contract rollover.
Every day,before the closure of the RTH there is a settlement period at15:45 EST,so if the price of the instrument you hold lower your paid price,you are getting "reset" with the settlement price and debited to that difference.In other words ,if you are under water by the time of the settlement period,you automatically lose that difference.I guess there isn't any way to avoid it in futures.It's a bit not fair.Why should I lose that difference if I'd like to hold further?
They don't know how long you are planning to hold.
Yes, you lose and your account is debited when it moves against you, but you are also creditied when it moves in your favor, so, it is all fair.
so ,you are saying that if i am in longer term trade like 1-3 years the futures is not suitable? i want to long usd/jpy from current ,80 to let's say 1.20 which are 4,000 pips in spot forex,that can take up to 3 years to develop,all this time i have no intentention to sell utill the price reached in spot forex you just set and forget,buy usd/jpy and go relax
no, I felt the same way about crude and checked it up one side and down the other, if you don't believe me, check out USO, that is an etf that simply rolls over crude futures.
To be fair, no your best bet would be in spot forex, why your govenment will not allow that is beyond me, that is the most conservative way to play it.
But yes, you could just put on a position in the front month and keep rolling out, but it would take a big move to make that strategy profitable.
I did that back a longtime ago in swiss francs, but that was a mega move. And that's what it takes to make money in that strategy.
I don't know if I would call 80 to 120 a mega move, especially since CAD will also be moving and that's what you will be keeping score in.
no, your government is screwing you by forcing you to move to futures.
this is a total crap ,i was looking for other brokers ,all the same here just another egz:
To trade with CMC Markets Canada you must be an Accredited Investor. Unless otherwise approved, you must also be a resident of Canada.
CMC Markets Canada will not take a legal position regarding your status as an Accredited Investor. If you are unsure of your status, CMC Markets Canada recommends you seek legal advice regarding such status.
Please select at least one of the following that applies to you.
1. An individual who, either alone or with spouse, has net assets of at least Cdn.$5,000,000; Are you kidding me? if i have 5 mill$ ,why do i need to trade at all?