I don't know if you have seen the plan about new regulation, but it should be possible to trade Futures on a stock. I am a newbie in this area, but I would like to understand the advantage to have Futures on a stock rather to use option on a stock, does some could give me a hint about that?
The new regulation should be available sometime for this automn, but no release date again because some approval authority have to come. Major change will be: 1) No downtick rule for short sale 2) 20% marginable (Leverage of 5:1) 3) Future on stocks and I would like to understand what Future on stock will give to us, that option don't have?
OK I see a big advantage there with the no time decay, but does stock option will have advantage against Future on stock?
The option will have a big advantage in one area. Limited downside risk. With a deep in the money option that has a near even delta you can get the action of a stock/future without the total risk of owning the underlining stock. Another area is leverage. While a SSF may have more leverage than some of the stocks options, some of the options may very well offer better or even much better leverage. Depending on your timing and how strongly you feel about your signal you may be better off buying an option due to the increase in leverage
Anyone have new info on when we can start trading these new derivatives ? the volatility is certainly here now ... after searching some of the various websites one chicago nasdaq liffe I am
Setharb, I read they were gonna start in sept but who knows, they keep pushin these things back, I saw a pr where the nfa were holding educational seminars on the instruments. If anyone has a definitative date, please post it, tia. later.
Another problem of Options is big spreads, especially the deep in the money ones. SSF should have spread closer to those of stocks.