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US SEC clears last hurdle for single-stock futures
- Thread starter brad1970
- Start date
I'll try this one more time, hopefully someone will get it. Leverage has NOTHING to do with being more or less risky. It has to do with correct money management. If you don't understand this you are probably trading too large a size. Get Van Tharps first book and study it carefully.
So when will they be available to trade?
What is the economic justification for these SSF's? The individual investor has no need for these things.
First of all, fortunately, we don't live in a communist society where every product introduced needs to have an ecomomic justification for the good of the people. What is the economic justifiaction of a casino, or a video game?
Point: The ability to perfectly hedge a stock position is justification enough. Hedging adds liquidity, and liquidity (or in other words the ability of companies to raise investment money) is the market's primary function.
Counterpoint: Does anyone know if SSFs will be stock or cash fungible? Lack of fungibility for both cash and stock could be the Achilles' heel.
In terms of intra day scalping, are these SSFs going to be the ultimate leading indicator for the stock you are trading (thanks to DOT)??
will we be able to "check the futures" on individual stocks before the market opens? If so that is one benefit.
What will be the size of these contracts? 100 shrs? 1000 shrs?
also retail traders will be able to hold positions overnight with 5:1 leverage, that is good if you want to hold winners overnight.
Prop firm involvement? It seems that almost all prop firms are strictly geared to trading as much stock as possible, and they don't allow futures at all.
What will be the size of these contracts? 100 shrs? 1000 shrs?
also retail traders will be able to hold positions overnight with 5:1 leverage, that is good if you want to hold winners overnight.
Prop firm involvement? It seems that almost all prop firms are strictly geared to trading as much stock as possible, and they don't allow futures at all.
Originally posted by bundlemaker
I'll try this one more time, hopefully someone will get it. Leverage has NOTHING to do with being more or less risky. It has to do with correct money management. If you don't understand this you are probably trading too large a size. Get Van Tharps first book and study it carefully.
i understand that leverage has nothing to do with riskiness, i wasn't against leverage but doesn't the whole SSF thing just makes the PDT rule redundant ? If SEC thinks that PDT is going to reduce speculative risk in trading, isn't the 20% margin requirement just make it worse. People could just over trade.