Rookie needs help...
- Thread starter Rake
- Start date
Hopefully someone else will know the answer to that. I don't know how margins are handled for spreads. I know when I used to trade wheat there were lower margins for spreads but I never used them and I don't know if the same applies now to the ES/NQ.
Until recently, you couldn't trade the QQQ and the NQ in the same account, so the hedge there is a new issue for brokers. You could send an email to IB to see how they handle it.
Until recently, you couldn't trade the QQQ and the NQ in the same account, so the hedge there is a new issue for brokers. You could send an email to IB to see how they handle it.
>>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? <<
Could you answer both of the questions above!
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>>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.<<
So, there're futures and options on the futures??? Could you explain these two in a little more details. Thanks buddy, you're a life saver! I'm learning alot and fast!
Could you answer both of the questions above!
____________
>>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.<<
So, there're futures and options on the futures??? Could you explain these two in a little more details. Thanks buddy, you're a life saver! I'm learning alot and fast!
Originally posted by qazmax
How do you calculate the maintenace needed for a spread position in futures?
E.g. long the ES2U and Short the ES2Z
or
E.g. short the ES2U and long the ES2Z
Do you get a margin benefit if you are covering the futures risk with the QQQ?
E.g. long 1 ES2U and short 806 shares of QQQ
For calendar spreads the Merc has a table for finding the margin. Look on their website. I think they call it "performance bond".
Now, whether your broker is sophisticated enough to give you that exchange minimum margin amount or if they will charge you a full margin for each position, is a question for your broker. Brokers have the right to have margin amounts set higher than the exchange minimums.
You won't be able to get a margin benefit by spreading the ES versus the QQQ. The two products will be in different accounts (per US regulations).
Originally posted by qazmax
When will the October futures start trading instead of the September? Is it like options... the first day after expiration. Or is it before that?
Thanks,
The roll for the e-minis will be from Sep to Dec (not October!). The roll happens the first Thursday after the first Friday of the month of expiration.
Originally posted by qazmax
When will the October futures start trading instead of the September? Is it like options... the first day after expiration. Or is it before that?
Thanks,
The NQ and ES futurs only have four contract months, March, June, September and December. I believe the December '02 contract will become the "active" contract on September 12 but I am not positive on that date.
But December is already listed? Is the "rol" you mentioned just in the volume traded?
How does the months listed work for futures? How do you know what is coming next? Options are in a set pattern with the front two months always listed. Then one of three cycles (Jan, Feb, Mar) aplies to the stock chosen on some randomness.
