misconception about futures

Originally posted by Breakout



Good question sabena...There is one little nuance about futures that I feel makes them a little more risky than stocks. Futures will often open locked limit down or up and if you're on the wrong side it can be several days of locked limit moves before you can get out. However, with the indexes you don't have this problem. Usually, it's with corn or something like that. Just a thought...have a nice day.
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options will always allow you to hedge yourself flat during lock limit up/down. They are still trading.
Do a conversion/reversal and you are than market neutral.

The floor will make you pay a premium for this but you can protect your risk
Robet
 
Not in the S&P's. They want a BIG running start.

Sabena:

I have traded futures for 10 years, and for the last years at 200K contracts per month.

I HAVE NEVER BEEN IN A LIMIT MARKET.

Please have a clue.
 
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