Rookie needs help...

Originally posted by qazmax
I am unclear on the trading hours of the GLOBEX futures?

http://www.cme.com/about_cme/about_tradinghours.cfm

This website says the ES and NQ are not traded from 3:15 - 3:45.
(15:15 - 15:45) I assume this is AM.

Is ths East Coast Time or Chicago time?

Does this mean the ES and NQ are traded 23.50 hours a day? 7 days a week?

Does anyone have experience trading these securities during other countries trading day?

Is there a solid market during this time?

What about on weekends or holidays?


:)
More...

Gazmax

ES and NQ do not trade between 15:15-15:45 Central Time (16:15-16:45 Eastern Time). This is in the afternoon. (24hr clock)!
If you look at a chart of either of them, you will see a gap after 4:15pm EST.

They stop trading on a Friday at 4:15pm EST and open up again on Sunday at, I believe 4:30pm. They are not open for trading on major holidays.

As the CME is in Chicago, times are normally quoted in Central Time.
 
If I buy the ES2U and I put up $3,000 for margin.

When the ES2U drops 60 points, I will receive a margin call and be required to submit $3000 the initial maintenance again.

Is this correct?

:)
 
The $3000 is margin required in your account to maintain the position. If you have $5000 in your account and you buy 1 contract, the position can only go against you by $2000 ( But why would you let it??) before you are forced to liquidate the positions. Margin is like a "good faith" deposit for the contract. If you have less then the $3000, in you account, you will not be able to purchase the contract.
 
qazmax,

There are two margin levels, initial and maintenance. If you are talking about the ES, the initial margin for an overnight position is $3563 (this is all with IB and I believe they use the minimum margins required by the exchanges). With the NQ, it is now $2250. That amount is required to put on a new position. You can hold that position until the maintenance margin level which is $2850 for ES and $1800 for NQ. If your account falls below the maintenance level, you will be required to deposit money to bring it back to the initial margin level (although I believe IB will auto-liquidate the position, check with your broker to find out how they handle it).

Margin levels are lower if you exit your position before the close. Here are the current numbers off the IB website.

Intraday Initial: (ES) 1781 (NQ) 1125
Intraday Maintenance: 1425 900
Overnight Initial: 3563 2250
Overnight Maintenance: 2850 1800

In your example, you would put up $3563 per contract. Since maintenance levels are $2850, if the market moved ~14 points against you then you would be in violation of the maintenance margin and would need to deposit another $700 to bring the account back up to the initial margin level. For intraday trades, just cut the numbers in half.

If you trade with the minimum margin in your account, you are gambling rather than trading IMHO.
 
I hope you guys don't mind another newbie jumping in too!

1) So, futures must be margin? Or can it also be traded with cash to avoid maintenance calls?

2) Do you know of any equities/indexes that have options and futures traded on them? Please list the underlying symbols with their related future symbols! Thanks!
 
Originally posted by bvam1

2) Do you know of any equities/indexes that have options and futures traded on them? Please list the underlying symbols with their related future symbols! Thanks!
More...

Number 2 I might be able to answer...

Currently there is the QQQ that has a underlying stocks, options, and the NQ mini futures you can trade.

In the near future Single Stock Futures and Narrow based index futures will be available.

These 2 products have not been begun trading yet. The should begin relatively soon.

OneChicago, NQLX are the two main players. ISLD Futures and AMEX are also going to trade them. OneChicago has a list on their website of the indexes and stocks they will have futures for. The latest ones are sector indexes, which should be fun to trade.

:)
 
1) So, futures must be margin? Or can it also be traded with cash to avoid maintenance calls?


No, you DO NOT have to use all the margin available. Since 1 NQ is worth ~$20k (1000 * $20/pt) and 1 ES is worth ~$47k (940 * $50/pt) then you can keep that much cash in your account per contract you trade and be completely unleveraged. It would have the same capital effect as if you bought stock in a cash account.
 
For stocks they can be held in either a cash accout or a margin account. Some option positions can be in a cash account. like a covered call.

I think that all futures have to be in a special futures account that is margined. Because you are not buying a security, but rather securing an obligation.

I could be way wrong on that though.... just a guess... sorry for guessing, futures is new for me.

:)
 
What's the difference between index options and futures??? Or it is the same but called differently.

1 NQ mini is the equivalent of how many QQQ stocks?

And are there any more futures that have stocks and options like the QQQ?

thanks you guys! I am relatively new to futures!
 
Originally posted by bvam1
What's the difference between index options and futures??? Or it is the same but called differently.

Are you asking what is the difference between index options and index futures? Or are you referring to the difference between the cash index products and the futures products that are based on them?

1 NQ mini is the equivalent of how many QQQ stocks?

From earlier in this thread...

"800 QQQ has the same exposure as 1 NQ contract. 500 SPY has the same exposure as 1 ES contract."


And are there any more futures that have stocks and options like the QQQ?

You've got it turned around. The underlying indexes (Naz, S&P) have ETF's (QQQ/SPY), options on the ETFs, futures (NQ/ES), and options on the futures. Futures on common stocks are on the way...at least that's what they keep telling us... Anyway, the futures are based on the underlying index or security, not the other way around.
 
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