I am new to trading and want to start trading in a few months. I just want to make sure my research is right for the S&P 500 ES. 1. There are no daytrading rules on ES like on stocks ie. 25,000 in account correct? 2. When I place an order to buy a contract at say 1310, if I sell at 1313, I just made 150.00 minus commissions correct? Using 1310 buy in as a base. I win or lose 12.50 per tic or 50.00 per point. 1312 I sell and get 100.00. 1308 I sell and lose 100.00 minus commisions from both? If I buy 2 contracts then just double both in either direction. Just want to make sure I understand this right. 3. Any good broker/platform recommandations for the ES? Thanks
1) Correct, pattern day trading does not apply to futures. 2) $50/pt, $12.50/tick on the ES. Your math looks good. Numbers grow (or decrease) x the number of contracts being traded. 3) I suggest Open ECry but you should demo a handful of brokers software to get a feel for them and see what you think. http://www.openecry.com
Yes your numbers look correct. You will also need to take slippage into account, though this is probably not an issue with the ES. I use Interactive Brokers (www.interativebrokers.com) as my broker. From your question I assume you are interested in day trading. Low commissions are really important if you want to day trade, so keep that in mind when you choose a broker.