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new daytrading rules for futures...
- Thread starter virgin
- Start date
The SEC does not have any regulatory power over futures trading. Futures are regulated by the CFTC.
You should also note that the notion of margin has different semantics with stocks and futures contracts. While with stocks it represents a collateral loan towards the purchase of stock, with futures its role is that of a performance bond. Unlike a share of stock a futures contract does not represent ownership of anything but an obligation to buy or sell the underlying at a certain price at a future date. Futures are marked to market each day and the margin put up earns interest or depending on the broker can even be put up in the form of treasury bills. IMO the different nature of margin in futures trading makes it highly unlikely that any restrictions of this kind would be considered.
Dave
You should also note that the notion of margin has different semantics with stocks and futures contracts. While with stocks it represents a collateral loan towards the purchase of stock, with futures its role is that of a performance bond. Unlike a share of stock a futures contract does not represent ownership of anything but an obligation to buy or sell the underlying at a certain price at a future date. Futures are marked to market each day and the margin put up earns interest or depending on the broker can even be put up in the form of treasury bills. IMO the different nature of margin in futures trading makes it highly unlikely that any restrictions of this kind would be considered.
Dave
True, right now futures are not under the SEC. However, with the introduction of single stock futures (working their way right now through the necessary channels) the lines will be blurred and potentially the SEC could argue or muscle its way into regulating the futures market.
Just my humble opinion. I don't know how long the CFTC can hold on to things. Especially with the clamp down mentality at the SEC right now. Don't think its paranoid to entertain such thoughts. If it does happen it will be well into the future.
Just my humble opinion. I don't know how long the CFTC can hold on to things. Especially with the clamp down mentality at the SEC right now. Don't think its paranoid to entertain such thoughts. If it does happen it will be well into the future.
futures are meant to be traded for short term and attempted
to be traded for the long haul. (if you spend and year or
two trading any futures contract - you'll see what I am talking about). No one buys futures for cash - except the
commercials (we can safely leave them out from the "trading
equasion" as they don't even have to go to the exchange for
buying the "this years crop".) The third market futures business is many times the multiple of all exchanges combined. With no margin (like stock market) to speak of what could any oversight buerocrat do ? The margin is the good faith amout entitle you to hold the contract as such. You expected to have more money than your futures account - so in theory they could do it by saying if your net worth is
less than 250k - play craps in reno !!!! Will they - I doubt
it !!!!!
to be traded for the long haul. (if you spend and year or
two trading any futures contract - you'll see what I am talking about). No one buys futures for cash - except the
commercials (we can safely leave them out from the "trading
equasion" as they don't even have to go to the exchange for
buying the "this years crop".) The third market futures business is many times the multiple of all exchanges combined. With no margin (like stock market) to speak of what could any oversight buerocrat do ? The margin is the good faith amout entitle you to hold the contract as such. You expected to have more money than your futures account - so in theory they could do it by saying if your net worth is
less than 250k - play craps in reno !!!! Will they - I doubt
it !!!!!