Futures: starting out from the beginning

Mickyjj · 18 February 2016

Hi all,

I want to be able to trade something where I can go long or short with ease. Thinking of mini SPI futures. Have traded equities and ETOS before but found Options rubbery. I seem to think that futures is "cleaner" and more efficient. But what do I know. From reading here broker Interactive brokers seem well liked. Can I trade asx SPI or mini SPI through them? What will I need? Data service. Broker. Trading platform software. Is that all provided by IB? Has any one had experience trading this mini SPI as it's pretty new. Any genuine anecdotes are appreciated.

Cheers

del444 · 19 February 2016

Mickyjj said:
but found Options rubbery. I seem to think that futures is "cleaner" and more efficient

Do you mind explaining this? I have only just started out in options after moving from tradie all share trading. Be interested to hear your thoughts.

Mickyjj · 20 February 2016

wat17 said:
Do you mind explaining this? I have only just started out in options after moving from tradie all share trading. Be interested to hear your thoughts.

I'm no expert and it's been a while since I traded options (a maths head could explain better) but options pricing seems very elastic compared to the relatively straight forward price of futures in relation to the underlying asset. But I am strictly a learner I know virtually nothing compared some of the dudes on this forum.

CanOz · 20 February 2016

Mickyjj said:
Hi all,

I want to be able to trade something where I can go long or short with ease. Thinking of mini SPI futures. Have traded equities and ETOS before but found Options rubbery. I seem to think that futures is "cleaner" and more efficient. But what do I know. From reading here broker Interactive brokers seem well liked. Can I trade asx SPI or mini SPI through them? What will I need? Data service. Broker. Trading platform software. Is that all provided by IB? Has any one had experience trading this mini SPI as it's pretty new. Any genuine anecdotes are appreciated.

Cheers

I haven't seen anyone offering the SPI mini yet, have you considered IG Markets for a CFD? I've been watching the SPI now for a few months in preparation for a move to Asian futures and its changed allot from the old slow dog it used to be, allot of the time it breaks out of the opening range and runs all day!

Mickyjj · 20 February 2016

CanOz said:
I haven't seen anyone offering the SPI mini yet, have you considered IG Markets for a CFD? I've been watching the SPI now for a few months in preparation for a move to Asian futures and its changed allot from the old slow dog it used to be, allot of the time it breaks out of the opening range and runs all day!

I've seen a big push from lots of brkers offering CFDs, but it simply hasn't captured my imagination yet anyway. I've heard IG mentioned a few times are they good?

hamli · 20 February 2016

Mickyjj said:
I'm no expert and it's been a while since I traded options (a maths head could explain better) but options pricing seems very elastic compared to the relatively straight forward price of futures in relation to the underlying asset. But I am strictly a learner I know virtually nothing compared some of the dudes on this forum.

You are right, other aspects come into play for options. Strike price, volatility, time etc. If you are playing purely for direction and want leverage, I too, would feel that futures is a better delta play.

The biggest mistake some one can make though, especially when they are starting out, is not fully understanding the size. Sometimes you need to trade around your positions and wait until you are right. But to do that, you need to be able to ride out the fluctuations.

good luck.

Mickyjj · 21 February 2016

hamli said:
You are right, other aspects come into play for options. Strike price, volatility, time etc. If you are playing purely for direction and want leverage, I too, would feel that futures is a better delta play.

The biggest mistake some one can make though, especially when they are starting out, is not fully understanding the size. Sometimes you need to trade around your positions and wait until you are right. But to do that, you need to be able to ride out the fluctuations.

good luck.

Yeah that's why I was curious about the mini SPI futures contract $5 per point rather than $25. But it not as liquid as the full SPI but might be ok. Hard to find info on it.

DeepState · 21 February 2016

Mickyjj said:
Yeah that's why I was curious about the mini SPI futures contract $5 per point rather than $25. But it not as liquid as the full SPI but might be ok. Hard to find info on it.

The Mini is not a security which trades on an exchange. It is a facility provided by the CFD provider whose prices are tied to the standard contract but where you may pay a slightly wider spread (or, possibly, attract additional admin expenses.) You can think of it as being equally liquid to the standard contract...because it basically is a chopped up version of the standard contract.

kid hustlr · 21 February 2016

I thought the mini was in the SFE now?

DeepState · 21 February 2016

kid hustlr said:
I thought the mini was in the SFE now?

Sorry, my error.

kid hustlr · 21 February 2016

Still could be a wide spread I've not seen the mkt

TortoiseTrader · 23 February 2016

Hi,
one broker that does $5 per point on futures contract SPI is tradedirect365...they are meant to follow
underlying futures price exactly ( and the spread)......not sure how accurately though. they charge $5 per side.

Modest · 23 February 2016

TortoiseTrader said:
Hi,
one broker that does $5 per point on futures contract SPI is tradedirect365...they are meant to follow
underlying futures price exactly ( and the spread)......not sure how accurately though. they charge $5 per side.

Interesting... Anyone else can vouch for this mob?

dead trader · 24 February 2016

Tradedirect365 are good and legit.

I have traded with them before. Withdrawals are processed quite quickly and without any problems. I traded DAX and other blue chip share cfds. I have also spoken with Davin over the phone, when I called outside of business hours. I'm thinking the business line diverted to his mobile or something.

Highly recommend trade direct 365. Very friendly and genuine broker. No kidding. PM if you're still hesitant and can send you screenshots of my statements. I only traded a small account size though.

Would consider trading with them again. I'm on a break as I'm currently unemployed.

dead trader · 24 February 2016

This is a screenshot of my online banking transactions.

I did an advanced search to bring up the tradedirect365 withdrawal amounts.

PS. I don't get any rewards for recommending them, only wish them many prosperous years of business, as I really liked their customer service!

Modest · 24 February 2016

greasy_pancakes said:
Tradedirect365 are good and legit.

I have traded with them before. Withdrawals are processed quite quickly and without any problems. I traded DAX and other blue chip share cfds. I have also spoken with Davin over the phone, when I called outside of business hours. I'm thinking the business line diverted to his mobile or something.

Highly recommend trade direct 365. Very friendly and genuine broker. No kidding. PM if you're still hesitant and can send you screenshots of my statements. I only traded a small account size though.

Would consider trading with them again. I'm on a break as I'm currently unemployed.

Thank you kindly!

ntrader · 25 February 2016

I'm in the research phase toward beginning to trade index futures.

Below is what I've concluded:

What you need:

*Solid internet connection, even a separate PC no antivirus no browsing, no email on this one
*Market Profile and Order Flow software " charts are mainly reference" Not the primary
*Stringent risk management with a simple but robust trading plan
* "Optional" be part of a trading room with a proven pro at the helm
*Live news feed
*Need to know what data can effect your chosen market
* For the index your trading need to keep a pulse on the market leaders

How to think and approach:

*Post trade analysis
* Know how to pick the right sessions to trade
*Stay out and take time off the market after above average win/losses

I'm still researching

Mickyjj · 27 February 2016

ntrader said:
I'm in the research phase toward beginning to trade index futures.

Below is what I've concluded:

What you need:

*Solid internet connection, even a separate PC no antivirus no browsing, no email on this one
*Market Profile and Order Flow software " charts are mainly reference" Not the primary
*Stringent risk management with a simple but robust trading plan
* "Optional" be part of a trading room with a proven pro at the helm
*Live news feed
*Need to know what data can effect your chosen market
* For the index your trading need to keep a pulse on the market leaders

How to think and approach:

*Post trade analysis
* Know how to pick the right sessions to trade
*Stay out and take time off the market after above average win/losses

I'm still researching

Sounds like a plan mate. Good luck with it.

Futures: starting out from the beginning

Mickyjj

del444

Mickyjj

CanOz

Home runs feel good, but base hits pay bills!

Mickyjj

hamli

Mickyjj

DeepState

Multi-Strategy, Quant and Fundamental

kid hustlr

DeepState

Multi-Strategy, Quant and Fundamental

kid hustlr

TortoiseTrader

Modest

It's in the chart

dead trader

dead trader

Modest

It's in the chart

ntrader

ntrader

Mickyjj

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