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Old 04-18-2017, 09:53 AM
 
14,422 posts, read 20,544,349 times
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Quote:
Originally Posted by RisingSun361 View Post
I thought about trading futures at optionsXpress this month. I practiced with their virtual platform. What I learned is that you really need deep pockets to trade futures. Because futures contracts are so large the only people who have any business trading futures are large institutions, or a fund, or an individual with deep pockets.
Old thread same subject....


I have an account at Options Express and having some trouble getting permission to "trade options on oil futures." An example would be a call butterfly for July WTI futures. Strikes 52-57-62.
The risk is limited to the cost of the structure I think.


Since I only want to trade options on futures why the strict requirements.


Why deep pockets if the butterfly may be able to be opened for under $200.00 (Two hundred dollars)


If Options Express does not want my sizeable deposit what other firms are out there that would approve an account?
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Old 04-18-2017, 10:48 AM
 
Location: North Idaho
32,565 posts, read 47,740,591 times
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Futures market is high risk. That's neither good nor bad. Investors with the stomach for high risk can have larger gains and larger losses.
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Old 04-18-2017, 06:51 PM
 
1,767 posts, read 1,737,080 times
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Welcome to the higher level of gambling- we're happy your here.
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Old 04-18-2017, 11:27 PM
 
748 posts, read 818,120 times
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Quote:
Originally Posted by Aussie N Houston View Post
Scalp traders are successful, if they understand the long term trend. Most get destroyed because they are to busy looking at the micro move. The macro adjustments will happen. And they make the big money. Just look at PTJ, Soros, Druckenmiller, Neighderhoffer..

I believe you could do a mix of both. But either way its greed. I think having one big trade a year over a massive event works. If you can accept the risk on an asymmetric bet.
This is very true. Most scalpers have a long or short bias. Long bias do well in rising markets, and short in falling markets. Some guy named Don Miller made over a million during the financial crisis scalping. It's really not an impossible task, but it's really not for everyone either. And quit while you're ahead, and switch to Bonds or something.
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Old 04-22-2017, 05:58 AM
 
Location: Wartrace,TN
7,998 posts, read 12,695,543 times
Reputation: 16314
Quote:
Originally Posted by howard555 View Post
Old thread same subject....


I have an account at Options Express and having some trouble getting permission to "trade options on oil futures." An example would be a call butterfly for July WTI futures. Strikes 52-57-62.
The risk is limited to the cost of the structure I think.


Since I only want to trade options on futures why the strict requirements.


Why deep pockets if the butterfly may be able to be opened for under $200.00 (Two hundred dollars)


If Options Express does not want my sizeable deposit what other firms are out there that would approve an account?
The problem is probably with the way you filled out the options application. I hate to say this but if you are new to options trading they will not allow you to trade anything but covered calls. You have to be "creative" when filling out the form such as telling them you have 5 years experience, excellent income and a high net worth.

The reason for the form is to cover their liability when a newby starts trading options and loses everything. They don't want that newby to sue them saying they should have never been approved for an options account.

You could try TD ameritrade or some other broker and fill out the form differently than you did fo Options express.

You might want to look at this link to the CME options. It might be entertaining.
Options on Futures
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Old 04-22-2017, 12:28 PM
 
14,422 posts, read 20,544,349 times
Reputation: 7980
The application was finally approved. We are trying to set up a trade for a WTI call butterfly.
When we get the chain there is a drop down window where the type of trade can be chosen. We choose butterfly call and get no logical results. At one point we had a 2 legged spread setup and it would have been a debit spread. It showed margin required (to trade spreads, no problem) and what looked like a spread requirement. If there is a spread requirement on a debit call spread then there is no hope for the other two legs of the butterfly since the long leg will be $2.50 further out of the money and would theoretically have a $2500 spread requirement. The butterfly's only risk should be the cost of the four legs.

In the regular Schwab account, there is no spread requirement on a butterfly. Which is good since there should be none. Here's why for anyone not familiar with a butterfly:
August VIX (17-21-25)(1x2x1)
VIX at 30 the 17 long call is worth 13, the 21 short calls are worth a total of 18 and the 25 worth 5 = nil.

------------------------------------
We have yet to get a trade setup broker on the phone now with 3 long hold phone calls totaling over 45 minutes. If anyone uses OptionsXpress and can help us set us the WTI fly for any month, let me know.

By the way we were told OptionsXpress will be integrated with the rest of Schwab around October.
Trying to speak to a live broker by phone has really gotten poor in recent months. I guess they are trying to use a skeleton crew. We do not like to have to call them for anything. Not very friendly like they were in previous years. And of course Charles Schwab himself does not care.
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Old 04-22-2017, 04:29 PM
 
Location: Wartrace,TN
7,998 posts, read 12,695,543 times
Reputation: 16314
Been a long time since I posted this (I am the O.P.)

My trading methodology is nothing like what I posted back in 2013. I now focus on very short term trading with no technical indicators at all. I watch the depth of market, the tape and a footprint chart. I am in a trade when there is evidence of momentum and out when the other side steps up to defend. Trading can be as simple as you make it. Simple; not easy.
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Old 04-30-2017, 01:18 AM
 
14 posts, read 10,386 times
Reputation: 38
I found that creating a trading system produces the best results. I run my trading like a business and basically follow the rule of the system.

It's working out pretty good so far, my trading system is up about 80% YTD.

I do like options but I recommend learning how to sell premium. Dough.com offers the most comprehensive free education for beginners.
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Anybody involved in the futures markets?-amp-perf-q1.png  
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