Anyone want to explain how I can trade these? Why not just buy an option contract and have less risk? If it doesn't move up, you are only out your call premium. I want to learn these bad but I'm lost here. Is this a newer future contract in the last year or so?
> Anyone want to explain how I can trade these? Get a broker that trades them (e.g. IB), they trade at a few exachanges but OneChicago is the one with the highest volume apparently. > Why not just buy an option contract and have less risk? > If it doesn't move up, you are only out your call premium. There is only one inaccuracy here in my opinion and that is the word "ONLY". The premiums are huge and when the underlying moves the wrong way your premium literally gets wiped out (in other words don't hope to get much back by selling the option). Not to mention the mad spreads on top of that and the commissions. Cheers 50
..I hate trading options because you can lose money even when the market moves your way. Not so with the futures.
The advantage is leverage without the complexity of options. Time decay and volatility add a layer of complexity that most folks, especially the average joe are not interested in dealing with. As a money manager, try and explain to someone that while the security went up, they actually lost money. SSFs are a great way to offer leverage without complexity. Of course, with leverage comes increased risk. There's not much more to it other than leverage for the masses.