One idea would be to begin trading DIA or QQQ to get used to how they move. When you buy, don't use margin. Use cash and hedge the position with SSF.
Well I suggest where to begin would be go to www.nqlx.com and www.onechicago.com and look through their lists of which stocks have SSF's. See which of them you may already be trading. Start adding SSF stocks to your trading pages, watch them move. I do like to have the underlying stock on my page, with the SSF listed beneath it. If you wanted to just trade them just for the heck of getting a feel for trading, you could do it even better than the "hedge with SSF" idea: you can simultaneously buy one contract while selling one contract of the same underlying but with a different expiration month. When you do that, your margin allowance is increased to 40:1! That means, if you did that with a DIA at $80 a share, the amount of margin it would require to be long and short the same underlying DIA would be $400 total. If you do that with AMD, trading around $7.50 a share, total cost for the long&short position would be $37.50.
Does anybody know what currently are the top 5 most liquid SSF's ? Seems like this might be a good place to start?
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