CME - Why Smart Money Trades Spreads

Discussion in 'Trading' started by bone, May 14, 2020.

  1. heispark

    heispark

    Yes, you're correct. I found everything's wrong on my side. I need to change my broker first. I know what should I do....
    I like TDA TOS for its simplicity.
     
    Last edited: May 16, 2020
    #31     May 16, 2020
  2. heispark

    heispark

    Alas, margin is still not cheap enough...... :(
     
    #32     May 16, 2020
  3. bone

    bone

    #33     May 16, 2020
    heispark likes this.
  4. Overnight

    Overnight

    Not many of the brokers out there do, and it confuses the hell out of me. Why do brokers/FCM not offer the SPAN credit to their customers, when the exchange offers the SPAN credit to the broker/FCM? What is going on there?
     
    #34     May 16, 2020
  5. bone

    bone

    Discount brokers need a lot of account turnover. That’s why they target small retail speculators - hopefully day traders. They aren’t going to cater to proprietary firms, institutional accounts, commercial accounts, hedge funds, and sophisticated independent traders.

    Any top tier Chicago FCM - RJ O’Brien, Rosenthal Collins Group, Advantage; will have the Risk Controls to properly margin exchange spread positions.

    If you want to trade a big boy strategy, use a big boy FCM. As I’ve said previously - I’ve had hundreds of clients start out with very modest accounts at those firms. Especially Advantage.

     
    #35     May 16, 2020
    reinghar and heispark like this.
  6. Overnight

    Overnight

    I think what I meant to say there, is why does the exchange offer the credit to the broker (reflected on the broker statement), but then the broker says "That does not count"? I dunno. We may have to VOX that one.
     
    #36     May 16, 2020
  7. bone

    bone

    And what I meant to say is that discount brokers are too cheap to hire a competent Risk Manager and to pay for a decent risk monitoring platform.

    They’ll give you four times daily buying power for ES if you scalp, though. All about the turnover $$$$

     
    #37     May 16, 2020
  8. heispark

    heispark

    #38     May 16, 2020
    bone likes this.
  9. bone

    bone

    Discount brokers can be very expensive.

     
    #39     May 17, 2020
  10. BAT31

    BAT31

    TD Ameritrade is one of the worst place to trade futures (spreads and outrights):

    1. They don't offer day trading margin on outrights.
    2. They don't offer margin offset on on intermarket spreads.

    As bone said, find an FCM. I only use TDA for charting. The charting is very good and simple.
     
    Last edited: May 17, 2020
    #40     May 17, 2020
    Real Money likes this.