moving from 1 ES contract to 2 contracts
- Thread starter wiesman02
- Start date
Suntrader
Thankyou for the comeback. I at least cleared up that 1 contract is not the same as a 100 multiplier as in options contracts.
What is the value of the contract then? $1? In looking at my option brokers I can see I would need a Futures broker, do you recommend one? Preferably one with a paper money trading service to try it out.
It just seems to me there should be a multiplier here, but I've probably been doing options too long and no experience in ES futures on the E Mini?
What are commission like? I read .39 cents somewhere? I am trying to put it all together, the jargon, the technical lingo and such.
If a change in the daily ES is .25 = $12.50 then are you implying that the $1 bet would change in one day around 25 times for a daily .25 change?
I'm trying to rap my head around this? I'm understanding the Futures ES is a straight directional play? If what I'm guessing now, is true, then only the margin availability would control the swings on a daily bet of price movement.
Somebody mentioned trading the crest of waves. No idea really, but just a vague feeling about that. This would make sense then. Though price data on BIG CHARTS is 20 minute delayed, though I think I can get it down to 5 minutes by using a 1 minute chart.
Thankyou for the comeback. I at least cleared up that 1 contract is not the same as a 100 multiplier as in options contracts.
What is the value of the contract then? $1? In looking at my option brokers I can see I would need a Futures broker, do you recommend one? Preferably one with a paper money trading service to try it out.
It just seems to me there should be a multiplier here, but I've probably been doing options too long and no experience in ES futures on the E Mini?
What are commission like? I read .39 cents somewhere? I am trying to put it all together, the jargon, the technical lingo and such.
If a change in the daily ES is .25 = $12.50 then are you implying that the $1 bet would change in one day around 25 times for a daily .25 change?
I'm trying to rap my head around this? I'm understanding the Futures ES is a straight directional play? If what I'm guessing now, is true, then only the margin availability would control the swings on a daily bet of price movement.
Somebody mentioned trading the crest of waves. No idea really, but just a vague feeling about that. This would make sense then. Though price data on BIG CHARTS is 20 minute delayed, though I think I can get it down to 5 minutes by using a 1 minute chart.
I really don't have the time these days to go into, that is why I mentioned the cme website as a learning source.
But don't even consider trading the S&P with delayed data. The S&P is just about the toughest market to trade in the world with the best of data connections.
1 pt = $50 x present value of S&P equals the dollar value of how much stock value you control with a single contract. So big potential for gain or loss.
Minimum daytrade margin is $500/contract although some brokers offer $400. I wouldn't recommend coming close to those amounts, especially just starting out.
Gotta go.
But don't even consider trading the S&P with delayed data. The S&P is just about the toughest market to trade in the world with the best of data connections.
1 pt = $50 x present value of S&P equals the dollar value of how much stock value you control with a single contract. So big potential for gain or loss.
Minimum daytrade margin is $500/contract although some brokers offer $400. I wouldn't recommend coming close to those amounts, especially just starting out.
Gotta go.
go to think or swim and set up paper acct, the es .70 option credit speads, split the difference of each bid/ ask and this is where you will assumably get filled, it helps to give up a nickel.big charts is great for out of town checks on someone elses computer....but if you want to learn to trade the datas only good long term for 10 trades a year
Thanks for the input. I'm still trying to understand the nuances of the ES futures and ES options?
Can't even paper trade yet, as I do not know the technical jargon involved, the way they work and so forth.
I got from Cache Landing that futures are directional plays and the ES options are directional and to do with Greeks for an edge. This seems to be in relation to the true value of the option, because of mis pricing by standard pricing models, or market action on different exchanges. I prefer position trading to day trading.
I just ran a comparison between the ES futures movement and the OEX with which I'm more familiar. Seems to be about 6 OEX points to ES futures move of .25 or $12.50
That said; looking at the ES options for the E mini contracts The option chain looks strange?
The ES closed at 5.20
The August OTM is bid 2.30 and Ask 3.10
The August ATM is bid 0.00 and Ask .55
The September OTM is bid 2.30 and Ask 2.95
The September ATM is bid .35 Ask .50
The October OTM is bid 2.35 and Ask 3.00
The October ATM is bid .50 and Ask .60 ( narrowest margin )
The October ITM is bid 0.00 and Ask .10 ( biggest OPEN INTEREST )
The preferred action in E Mini ( ES ) options seems to be third month out, in October ITM, as that has the largest volume of OPEN INTEREST.
But why does it have a bid of 0.00 ?
********************
Regarding the E mini Futures contract, I'm presuming I need a futures broker?
You put in your margin, whatever amount you want and trade? Not clear yet if you can just buy or sell as you want, both UP and Down. In options the terminology would be CALLs or PUTS.
***************************
Just trying to grasp how the E Mini's work right now?
ALL INPUTS ARE WELCOME as I'm floundering right now, but comprehension is coming along slowly with each new set of insights offered.
Can't even paper trade yet, as I do not know the technical jargon involved, the way they work and so forth.
I got from Cache Landing that futures are directional plays and the ES options are directional and to do with Greeks for an edge. This seems to be in relation to the true value of the option, because of mis pricing by standard pricing models, or market action on different exchanges. I prefer position trading to day trading.
I just ran a comparison between the ES futures movement and the OEX with which I'm more familiar. Seems to be about 6 OEX points to ES futures move of .25 or $12.50
That said; looking at the ES options for the E mini contracts The option chain looks strange?
The ES closed at 5.20
The August OTM is bid 2.30 and Ask 3.10
The August ATM is bid 0.00 and Ask .55
The September OTM is bid 2.30 and Ask 2.95
The September ATM is bid .35 Ask .50
The October OTM is bid 2.35 and Ask 3.00
The October ATM is bid .50 and Ask .60 ( narrowest margin )
The October ITM is bid 0.00 and Ask .10 ( biggest OPEN INTEREST )
The preferred action in E Mini ( ES ) options seems to be third month out, in October ITM, as that has the largest volume of OPEN INTEREST.
But why does it have a bid of 0.00 ?
********************
Regarding the E mini Futures contract, I'm presuming I need a futures broker?
You put in your margin, whatever amount you want and trade? Not clear yet if you can just buy or sell as you want, both UP and Down. In options the terminology would be CALLs or PUTS.
***************************
Just trying to grasp how the E Mini's work right now?
ALL INPUTS ARE WELCOME as I'm floundering right now, but comprehension is coming along slowly with each new set of insights offered.
Hello, falconview... Earth to falconview... can you hear anything that others have told you?
In summary, if you would like to learn about the ES, then go to the source... the CME website. Or, as an alternative, use a search engine by the name of "google" and type "futures trading for beginners."
As an alternative, there are many books you could purchase through an online bookseller named Amazon dot Com. I realize you may never have heard of the term "self education" - but you'll be pleasantly surprised to find reader reviews attached to such books, on said site.
If you're unwilling to do even the most basic of research into futures or the ES in particular, then what are you going to do when you have an open trade that's going sour and you have a question?
Again... get off your lazy ass and do the most basic of research, which is what others have already politely tried to tell you.
Picture SSO, and SDS. If you buy SSO and it moves up you make money, if it moves down, you lose money. Same for SDS. Same for the ES. You buy it. If it moves up 1 point you make 50 bucks, if it moves down one point, you lose 50 bucks. You don't actually own anything, you're just borrowing it while you have the trade one. IB requires you have 2,500 in your account for each contract you trade. If your account is about to burn out, they will liquidate you.
