I am brand new to futures... but I am determined to discover what all the rage is about. Could people recommend a good brokerage firm? Maybe give me your top 3 picks... Also, I have read some books, but I am looking for a futures book that is what Natenburg is to options. Any suggestions? Exactly how many U.S. futures exchages are there? Do brokers have access to all of them usually? What are your favorite exchanges? How many places do the beloved e-minis trade? Thanks...
Elitetrader, and the internet in general, are superb learning resources. There is a ton of information on this site for beginners. If this is true: "I am determined to discover what all the rage is about.", then you need to roll up your sleeves and start digging. No need to ask people to repeat what has been written many times already. Look above this window, where it says "Forums>>Derivatives>>Futures>>Rookie..." Click "Futures" and start learning. -Jeff
The search mode is excellent here also. The rage of emini sp is they are cheap, fast fills, great volume, low commish. Many of the guys here use Interactive Brokers. As for the rest, your journey has just begun. You are very fortunate to have been turned on to this site so early in your pursuit. For me though, the first rule is....
I am reading as many posts as possible. But there are some basic concepts that I am missing. So I have to ask as I go too... thanks for the tips..
Oh man, You`ve got ways to go Whatever You do, do not think You know what to do... this is usually beginning of the most expensive lesson. Anyway, good luck, let the Futures be with U
Originally posted by Rake Could people recommend a good brokerage firm? Maybe give me your top 3 picks... You'll be hard pressed to beat Interactive Brokers. I wouldn't use anyone else except as a backup. Some like the J-Trader software that several brokers offer, just do a search on this site for that info. Also, I have read some books, but I am looking for a futures book that is what Natenburg is to options. Any suggestions? A great book on the futures markets is "The Futures Game". I think the author is Tewels. Its not about e-mini trading, but rather a book that explains how the futures markets work...something that is important if you are going to participate. Exactly how many U.S. futures exchages are there? Do brokers have access to all of them usually? What are your favorite exchanges? How many places do the beloved e-minis trade? There are several U.S. exchanges, but as a mini trader you would only care about 1 or 2. The Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT) are the main ones. The Nasdaq mini (NQ) and S&P500 mini (ES) trade on the CME's electronic exchange called GLOBEX. If your into T-Bonds or the Dow futures then you'll go through the CBOT's electronic exchange called a/c/e. One of the advantages of trading futures over stocks is the simpler routing. There are no alternate routes. Good luck in your pursuit.
Most of your questions have already been answered superbly. If you are making the transition from stocks and options to futures, I would like you to consider the following two statements: 1. If you sell a naked IBM Sep02 80 Call for $1.25, you will receive $125 and your margin requirement on the position probably won't be much more than that either. But you will probably treat it like a short stock position valued at $8000 when it comes to risk management. When you buy en S&P 500 e-mini futures contract, your margin requirement will be somewhere in the range of $1000-$4000, but you should treat it like a long stock position valued at $45000, or maybe $30000, since it is a broad index product. In the beginning, until you become consistently profitable, there is no reason to trade more than 1 contract. Is there? 2. Stock index futures usually lead stocks just like stocks tend to lead their options. I'm sorry I can't tell you more, but that's all I know about futures. Of course, there is a lot more I might think I know, but that's probably irrelevant to you anyway. Interactivebrokers.com gets my vote for trading e-minis. The best backup would probably be a stock account with sufficient funding to offset your e-mini positions using SPY, QQQ, or DIA. That way you are good even if Globex goes down.
tell me your trade setups- i will take the other side of them and provide you with liquidity- its like, we will help each other out.......PM me man and good luck trading