Futures Options Simulator/Demo

Discussion in 'Options' started by candymr2, May 24, 2006.

  1. candymr2


    Anyone know of a simulator/demo that lets you trade options on futures? I need one that will calculate margin requirements for the trade, and also being able to execute the trade in the demo. Thanks in advance! -Ted
  2. tomhaden


  3. You might want to look at opening a paper trading account with Interactive Brokers.


  4. Hey mo...I'm still trying to understand what the advantage is to trading options on futures? I have my hands full trading options on the vanilla's:p
  5. MTE


    SPAN margining, i.e. risk-based margining, is the main advantage of options on futures as opposed to index/equity options, which are rule-based margining.

    By the way, options on futures are vanilla as well.:)
  6. thx:D

  7. MTE,

    Can you give an example of SPAN margin calculation? Is the SPAN margin lower than the index option?

    I have been trading IWM options for a while, and will like to take a bigger position to move to either Russell 2000 index option (10 times cheaper in terms of commission) or Russell 2000 future option? However, I don't know how future option works (I never traded future). Can we apply the same trading strategies in all these 3 instruments?
  8. candymr2



    yip1997 --- Yes, SPAN margin requirements are MUCH lower than regulation T margin.


    ES JUL2006 1200P -100 CONTRACTS $-31,188.33
    ES JUN2006 1200P +100 CONTRACTS $10,534.21

    NET PREMIUM $20,654.13


    INITIAL $ 13,357
    MAINTENENCE $ 10,830


    INTIAL $ 27,000
    MAINTENENCE 21,659.00