Futures vs Options

Discussion in 'Index Futures' started by KGTrader4, Sep 19, 2022.

  1. deaddog

    deaddog

    The little we have learned about you in your short time on ET, I would recommend that if you get the urge to trade futures that you pour some gasoline on the hand that holds the mouse and set it on fire. :)
     
    #31     Sep 20, 2022
  2. KGTrader4

    KGTrader4

    LOLOL
    Well done DD. And frankly, I could not disagree one bit.
     
    #32     Sep 20, 2022
    deaddog likes this.
  3. schizo

    schizo

    Is that for MES? Per side? That's frigging crazy, if you ask me.

    Here's what AMP Futures charges for MES ($0.37 per side, including commission and exchange fees). AMP probably has the lowest fees in town.

    https://portal.ampclearing.com/account/commissionquote.aspx

    upload_2022-9-20_16-21-59.png
     
    #33     Sep 20, 2022
  4. KGTrader4

    KGTrader4

    maybe it’s because I’m not a professional trader or don’t trade that often. But it doesn’t bother me. If I buy (or sell) 5 contracts, I’m putting up $7150. Transaction costs are $34.80 round trip. That’s just under 1/2 a %. Who cares. of course if I was a professional, or otherwise doing 50 trades a day, I might care more. But that’s not the case.
     
    #34     Sep 20, 2022
  5. KGTrader4

    KGTrader4

    OK, I could use some help understanding…

    trading paper money, just screwing around trying to learn from experience. ( no wise ass comments please I know this will be an abortion if I start treating real money in the next month or two. I won’t do that until I know wtf I’m doing LOL)…

    sold short 5 contracts /MES @ 3868.25
    Closed Position @ 3878.50
    Loss on the trade was $256.25
    Transaction cost about $34 round trip


    So am I correct that with a multiplier of $5, each point that the index moves is worth $5 x 5 or $25? Had I bought one contract, it would have been $5 per point and I would have lost $50.

    so generally speaking when I take a position my risk (and reward) is $5 per point x # of contracts?

    am I getting this correctly?



    Explain?
     
    #35     Sep 20, 2022
  6. Overnight

    Overnight

    You are correct. Your transaction costs seem a bit high though.
     
    #36     Sep 20, 2022
  7. KGTrader4

    KGTrader4

    $2.25 per contract.yeah I’ve been told it’s high, but don’t care much, first off it’s a minuscule % of the trade, second , more important I’m not trading a lot. I may not trade at all, I’m just feeling my way thru it with a paper money account

    If I ever get serious about it I would look for cheaper alternatives for future, but for a few trades here and there there at most doesn’t pay for me to spend time moving money around
     
    #37     Sep 20, 2022
  8. xandman

    xandman

    If your going to take on this risk and depend on auto liquidation to cut your losses, you are a crazy fool.
     
    #38     Sep 22, 2022
    Real Money likes this.
  9. As an options trader, I've never met a profitable futures trader-and like many people, I found out that after the first 500 futures trades it's death by 1,000 cuts. 4 years of that crap and never again -you have to be right on direction, and stops and take profit/trailing stops. In a volatile market you'll just get stopped out every trade. Invest in underwear to sell to futures traders
     
    #39     Sep 25, 2022
  10. KGTrader4

    KGTrader4

    Lol, I gave up on the idea, moves way to fast for me.
    In fact, to protect myself from myself, I’m calling TD this week to shut down the futures account
     
    #40     Sep 25, 2022