A Little Help: Best Objective Source To Learn About Trading E-Mini Futures

Discussion in 'Index Futures' started by ByLoSellHi, Mar 4, 2007.

  1. Hey everyone. I've only been involved in trading equities and put/call options thus far.

    I am interested in the best objective source to learn the details of trading e-mini futures (I have a specific interest in S&P e-minis).

    I am not asking to be spoon fed, but just directed to a source that you find credible and unbiased.

    It is my understanding from what I have read so far that the basic leverage alloted to those with minimum accounts is on the order of 10 to 1, and that each 1 point tick in the S&P e-mini will bag or lose you $50 (or $500 with full margin), and the Naz will bag $20 (or $200 with full margin).

    One other thing - Any recommendations on the best 'no-nonsense' broker for this type of futures trading?

    Thanks in advance for any help in pointing me in the right direction. When I search for these answers, I get lamabasted with more promotional rather than education material.
     
  2. nkhoi

    nkhoi Moderator

    here is an objective way to find the best sources, click on journal forum, click on replies header to sort them, check out the top 10 thread, eliminate non future related thread. That should narrow them down to what you are looking for.
     
  3. Thanks, nk.
     
  4. Double post.
     

  5. I am interested in the best objective source to learn the details of trading e-mini futures (I have a specific interest in S&P e-minis).


    What do you mean by "details of trading e-mini futures"?


    It is my understanding from what I have read so far that the basic leverage alloted to those with minimum accounts is on the order of 10 to 1, and that each 1 point tick in the S&P e-mini will bag or lose you $50 (or $500 with full margin), and the Naz will bag $20 (or $200 with full margin).


    I may misunderstand your thinking here, but the concept of 10:1 or whatever isn't proper in futures.

    Margin requirements (technically it's called a performance bond) is determined by the exchange, and is different for each instrument. In todays world, the exchange minimum margin requirement is mandatory for overnight positions only. Intraday margins are determined by the broker/clearing agent. Intraday margin can be higher/lower or even zero if all parties agree.

    Regardless of the margin requirement, the tick value is constant for a given instrument...
    ES has $12.50 tick ($50 per 1 fullpoint)
    NQ has a $5 tick ($20 per 1 full point).
    In contrast...
    SP has a $25 tick ($250 per 1 full point)
    ND has a $25 tick ($100 per 1 full point)

    Margin requirements and tick values are per-contract. Tick value is constant regardless of margin required to open or maintain the position.


    One other thing - Any recommendations on the best 'no-nonsense' broker for this type of futures trading?


    I'm sure this answer will turn into IB showdown. Personally, I have no interest in a universal-type account.

    Osorico
     
  6. ==============
    Buy low, sell hi[sell low-cover lower]
    ES moves like trending OTM options;
    except your risk can be much more$/ contract but no time decay..

    Another excellant objective source; your own written dailyhi/low/close on ES.

    IB is a excellant one;
    they help with risk also , they may liqidate /auto matic sell someone 's ES minimum account before they blow it up.

    ES does more stoping/reversing than stocks;does more parabolic stop & reverse.Right on $50 ES point, subtract 4 or $ 5 commission. less comission for more volume.

    :cool:
     
  7. This board offers the most current and extensive information on trading one can have.

    As far as instruments, the best mover among the indices relative to margin is ER2 because it can easily move $1000 in a day.

    In my book for less experienced traders the NQ is the best. It has good range and volume, based on a broad based index and ample data points.

    ER2 is too wild (unless you can afford the swings), ES does not have enough swings and data points and YM can be quite erratic because the underlying consists of only 30 stocks.

    ER2 has enough of a fluctuation up or down in a whiff to present the trader a good size profit or loss in seconds or minutes. There is nothing more frustrating then see an attempt either way by the market and be bogged down in ES while ER2 and NQ respond nicely.

    I have been trading Crude lately because it is even more mercurial then ER2.

    The commission (which by the way is $3.62 RT at IB and at some other brokers if one does a certain size) is almost not a factor when trading ER2 and CL.


    Regards,

    GC
     
  8. If your looking for real-time live guidance you could also come checkout the site I moderate on at http://www.puretick.com We teach e-minii trading for newbies in an audio/visual chat room environment. It may not be for you but check the site out and make that determination.
     
  9. MrPaul

    MrPaul

    Here are a couple off hand you may like. If you like these PM me and I can dig up more. :)

    http://www.cme.com/presentation/presentation2.html

    http://www.teachmefutures.com/archive.asp
     
  10. I genuinely appreciate the feedback everyone.

    Spectre and Mr. Paul, I'm literally checking out the sites simultaneously with checking here.

    What is a prudent account size to start with, until the learning curve is 'climbed' a little?

    I have competing interests in my mind - I believe we will see continuing volatility, thus I want to rush in.

    Yet, I am truly lacking in knowledge now.

    Which compelling interest of these two trumps the other, now?
     
    #10     Mar 4, 2007