Please help on ES questions

Discussion in 'Index Futures' started by abenyukh, Feb 27, 2003.

  1. abenyukh


    I would like to learn about trading ES and ES options. Where is a good place to start.

    I am not sure exactly what the price of the ES has to do with anything other than the amount of gain or loss once your in because apparently you just need to have $2000 in your account to buy 1 contract.

    I think thats what i was told....

    Any help would be greatly appreciated.
  2. starting with 2000 and not knowing anything about trading you would be lucky to last 1 day.
  3. gnome


    If you're just starting out, you've got NO business messing with the emini. Trade SPY without leverage until you can be profitable.
  4. abenyukh


    If i buy 1 contract and set a stop loss of 10 points lets say, then i can only lose $500 right?
  5. Agree, you don't play with leveraged money when you don't know what you're doing, but how's he going to trade SPY with PDT rules? :-/

    F. P.
  6. gnome


    Yes, but it's also 25% of your trading capital. No serious trader would ever suggest it's OK to take that kind of risk.
  7. abenyukh


    How does leverage work with eminis. If i have lets say $10000 account, how many ES contracts can i play at once?

    I thought it was like 2 because of the 3563 margin requrement
  8. gnome


    Yes, you could initiate 2 contracts. Your "exposure to the market" would be abut $84,000. Your leverage would be about 8X your capital.
  9. I wouldn't suggest trading futures untill you have 2-3 years trading equities under your belt. Its a tough game.

    Also if you're gona do it anyway, start with NQ.
  10. abenyukh


    yes, but lets be realistic, for me to lose 84000 the s&p would have to drop to ZERO. It looks like 15-20 points are intraday swings so if i set realistic stops, i could potentially do ok?

    Also, if some one could explain Options on Futures for me.
    As i understand, if the option is at $25 for example, and i bought 1 contract that woudl be a cost of $25 * 50 which is $1250 and that is all I would be risking correct?

    If the option expires or is worthless, i only stand to lose $1250, so there is no exposure greater than the premium correct?

    would stock index options on futures be a good vehicle for me to investigate?

    #10     Feb 27, 2003