No....The December 07 YG contract was liquidated by IB and I have no open positions. I do not understand the "rolling over" of positions yet and thought my December 07 YG position would stay open until the stop was hit or I closed it.
My first YG future gold trade and a question
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No....The December 07 YG contract was liquidated by IB and I have no open positions. I do not understand the "rolling over" of positions yet and thought my December 07 YG position would stay open until the stop was hit or I closed it.
All "rolling over" a position entails is closing out the expiring position and opening the new front month. The new front month in Gold is February '08, although Jan trades, it is less active.
It's not a bad idea to know when a contract expires before taking a position. I started trading March Bonds this week, since Dec Rolls over tommorow or Friday, I do not have to worry about delivery or liquidation.
A broker has a cutoff time to liquidate a position, near expiration, unless you notify them you have intentions to take delivery of 33.2 fine troy ounces of gold!
There is tons of free educational material on the CBOT web site.
http://www.cbot.com/cbot/pub/page/0,3181,1130,00.html
el surdo
It's not a bad idea to know when a contract expires before taking a position. I started trading March Bonds this week, since Dec Rolls over tommorow or Friday, I do not have to worry about delivery or liquidation.
A broker has a cutoff time to liquidate a position, near expiration, unless you notify them you have intentions to take delivery of 33.2 fine troy ounces of gold!
There is tons of free educational material on the CBOT web site.
http://www.cbot.com/cbot/pub/page/0,3181,1130,00.html
el surdo
I've just started paper trading options on GC. I found out that the one that was OTM moved more than the ATM...I was told that there is not a great deal of liquidity in futures options and that these bumps can happen.
The problem with going too far OTM is low probability, which you exchange for cheaper options.
BTW, has anyone ever been assigned when a sold option goes ITM (on a spread).
The problem with going too far OTM is low probability, which you exchange for cheaper options.
BTW, has anyone ever been assigned when a sold option goes ITM (on a spread).
Your better off sticking to outright electronic positions unless you have a really good broker that can send your option order directly and immediately to the floor and on the cheap. The option ring in the metals is quite small in comparison to many other markets. Index equity options on futures for instance is much more liquid...
IB's policy:
For futures contracts that are settled by actual physical delivery of the underlying commodity (âphysical delivery futuresâ), customers may not make or receive delivery of the underlying commodity. Certain currency futures are excepted from this rule (see table below).
To avoid deliveries in expiring futures contracts, customers must roll forward or close out positions prior to a âClose-Out Deadlineâ. The standard Close-Out Deadline for holders of long positions is the end of the fourth (4th) business day prior to the exchange specified âFirst Notice Dayâ. For holders of short positions, the standard Close-Out Deadline is the end of trading on the fourth (4th) business day prior to the exchange-specified last trade day.
http://individuals.interactivebroke...ProductsReview.php?ib_entity=llc#futures_cash
For futures contracts that are settled by actual physical delivery of the underlying commodity (âphysical delivery futuresâ), customers may not make or receive delivery of the underlying commodity. Certain currency futures are excepted from this rule (see table below).
To avoid deliveries in expiring futures contracts, customers must roll forward or close out positions prior to a âClose-Out Deadlineâ. The standard Close-Out Deadline for holders of long positions is the end of the fourth (4th) business day prior to the exchange specified âFirst Notice Dayâ. For holders of short positions, the standard Close-Out Deadline is the end of trading on the fourth (4th) business day prior to the exchange-specified last trade day.
http://individuals.interactivebroke...ProductsReview.php?ib_entity=llc#futures_cash