Question about futures brokers with continuous contracts

[rmorse]

Quote from emg:

who will pay for the exchange/clearing and nfa fees?

No trading is free. I don't understand the question. Every trade has at least execution, clearance and reg fees. The cost of playing the game.

I'm saying any asset class that acts like the underlying asset has internal fees, because someone has the cost. You pay it, or they do, then charge you.

 

[1a2b3cppp]

Quote from brownsfan019:

Continuous contracts are only for charting purposes.

There is no actual ES #F contract being traded. That's esignal's, TS, etc. way of giving you the option to use 1 chart for the contract -- HOWEVER actual trades are placed on actual contracts.

So at rollover time, you must liquidate your contract that is expiring and purchase/sell the next contract you want.

Example:

The CL M contract expires today. If you were long/short CL M, you must get out of the position no later than today and purchase/sell CL N contract - even though the entire time your charts may read CL #F.

I mainly focus on oil so easier to use that as an example for me but the idea is the same regardless of what contract being traded. Only difference is how often you have to roll. Oil is monthly, indexes quarterly.

Ohhhhh, so it's just a charting thing. Gotcha.

Well that's still nice. Merging charts in non-coninutous charting brokers (OEC, charting with SierraChart) sucks.

 

[emg]

Standard definition of futures/commodity market:

futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today (the futures price or the strike price) but with delivery occurring at a specified future date, the delivery date.

The reason why there is no continous contract because each instrument must make delivery.

crude oil instrument as brownfans (lebron james fan as well) stated above expires every month because oil (physical goods) needs to be deliver across the nation every month. If crude oil futures have continous month refinery will not have oil in their tank and there will be no gasoline in any gas station.

 

[rmorse]

Quote from 1a2b3cppp:

Ohhhhh, so it's just a charting thing. Gotcha.

Well that's still nice. Merging charts in non-coninutous charting brokers (OEC, charting with SierraChart) sucks.

Interesting.........thanks

 

[brownsfan019]

Quote from emg:
crude oil instrument as brownfans (lebron james fan as well)

You do know he left in 2010, right? He now plays for another team.

It's 2011.

You're a little late on the lbj jokes.

You'll also note my username is not cavsfan, but brownsfan which might indicate which sport I'm most interested in.

I don't expect you to grasp any of that though.



Your attempt at humor is about as good as your broker's attempt at creating a website. Both are horrendous.