I have never trade these products before, but I would like to understand them better. Many users have recommended for the daytraders to try Futures and Options rather stocks, with some advantages as better leverage, no Daytrading Pattern. But it is really true that you can daytrade Options and Futures if you have wait long time before to proceed at the next transaction against your first?
The rules you mentioned are only for options. They are designed to protect marketmakers turf. I am aware of no such limitations in the futures markets. You may not always be able to buy on the bid or sell on the offer, but you are free to try, as often as you want.
You can trade futures all day and all night as many times as you want. Some platforms like J-trader even have a little button to push which says "Buy the bid Sell the offer." Which is nice work if you can get it. Roughly speaking, every $5,000 dollars in your account can control about $50,000 in stock indexes. And who knows, maybe soon you'll be able to trade SSF (single stock futures.) It may not be for everybody, but after I put on my first wheat contract I was hooked. And after I saw what the globex was all about, that's the only place I trade anymore. Come on over and give it a try. You might like it.
Futures have significant tax advantages for U.S. traders. I think that you will find that futures are also cheaper to trade on a commission equivalency basis relative to the cash market for fixed income and equity markets. If you are a day trader that sticks to major futures markets, you'll find that all of the negative hype regarding futures and risk is nonsensical B.S. - especially if its' coming from someone who would rather earn cash market commissions.
The only thing preventing YOU yes YOU from becoming an emini market maker is connection speed, skill and $$$.
Whenever somebody comes up with a bright idea, there's always a naysayer around. I've made an emini market many times. (The only problem is, I had to let it move against me by 2 points before I could finally complete the deal.) I don't call myself a market maker, but sometimes I only make one tick on a trade. But I figure if you can do that 8 times without getting stopped out for 2 points you would have broken even if it weren't for commissions.
Not naysaying I'm just thinking of the emini traders overlooking the S&P floor in Chicago trading HUGE volume. That's what I would call a market maker. Actually what I was saying is there is no legal or regulatory barrier preventing you from market making. There's no secret club to join other than the club of those having finely honed skills.
Now you tell me. And I paid $400 for a certificate which says I am officially an e mini market maker. Plus I got a nifty book and tape which shows the kind of house I can live in and the car I can drive as soon as I master their market makers quck study guide. (By the way, do your livecharts show after hours data? Mine aren't working.)
I keep hearing conflicting info about day trading options and the PDT rule, are options and futures exempt from this rule? what is the scoop and who can I refer a broker to for clarification if needed.. thanks
Futures and Futures Options don't have a PDT rule, they're governed by the http://www.cftc.gov Don't trade Equity/Stock Options so I can't speak to that.