Risk, Beta, and Margin

Discussion in 'Trading' started by Norm, Feb 24, 2006.

  1. Norm

    Norm

    Any thoughts on whether it is riskier to trade high margin instruments (like futures) or high beta instruments (like some equities)?

    Norm
     
  2. r/r on futs stinks
    r/r on beta stocks is excellent
     
  3. Futures are always riskier because of the leverage involved. High-beta stocks can go nowhere for long periods of time making you then wish you were trading futures. Trade what you feel comfortable with.
     
  4. its not just the leverage on futs, is the churning and apparent lack of direction (whipsawin'). it costs money, too much money(losses)...and...to pick up 0.5-1ticks(es) at best on r/r 1:1.
    gimme a break
     
  5. Chagi

    Chagi

    Hmmmm, are there are any websites that can scan/filter stocks by beta?
     
  6. Give you a break?...............Ha, ha, ha, you can't handle the "es"? Trade the e-mini MidCap instead.
     

  7. no, I prefer to handle the sgx sontract (nikkei225) and revisit similar conditions to the late 90s bubble instead of throwing my money away in a game infested by 1tick players like u.