Futures Trading Blog

Joe C asked:


I came across a forum or chatroom where traders of stockmarket/futures market were exchanging knowledge. It was discussing backtesting system, softwares at that time. However, I am unable to find that address again. I recall that the address had the words roundtable or knights. Pse help.

BAEK

michael s asked:


What licensing/schooling is involved in trading futures?

HIERRO

Mortaro asked:


Here’s some answers for the oil companies’ greed and arrogance: threat of government takeover, criminal investigation for price manipulation and fraud, suspend stock and futures trading. For oil companies in foreign companies: trade embargo.
These oil companies are gouging the public and the hard working, middle class is suffering. The politicians are either afraid or paid off. Reagan would have none of this foolishness; Truman would have locked them up.
It is time for action. The American people are fed up.
If Bush and Congress got serious about this, we would see the price of gas quickly get down to $1 - $2 a gallon.

NORDLUND

Pinche Wey (orale vato) asked:


IN YOUR OPINION, is this a good deal? I’ve heard that the wii is getting some good titles in 09 but i have also heard the same about the ps3. Which is better now and in the future? Right now, deadly creatures, madworld, and (something) mountain sound good for the wii. What games will the ps3 have in the future? Should i do this trade?

DOWNIN

See Real Picture ? asked:


I bought millions and millions of barrels of oil when they cost $60–$100 a barrel. I expect to make a kill when I sell. But right now it’s only over $140 a barrel. So here is my difficulty :

I have requested my agents spin the media, like: “Oil future looks high, expecting to be in the range of $200 a barrel soon” But it does not work price up fast enough.

I have paid the mainstream media, the Think Tanks, and the major PR talking heads, to spin China and India (supply and demand) responsible for price hike, to deflect American public anger. But that does not go far enough.

Right now, I am extremely nervous and worried. I urgently need a prey to buy those “paper barrels” on my hording. So I can profit. But where can I find my prey ?
ADD:
Airline industry has requested and demanded Congress stop oil speculation. I have my lobby on Capitol Hill work the Senators and Congressmen around the clock. But I do not how long they can hold.
Airlines urge Congress to curb oil speculation
http://www.boston.com/business/articles/2008/07/12/airlines_urge_congress_to_curb_oil_speculation/

LAMERE

Kingsley Y asked:


I have been reading about options and futures trading in the last week and I think I understand both of them. I have also been reading about using stop loss order so I have a question in relation to that.

Options gives a buyer the right, but not the obligation, to buy or sell an underlying asset (a stock or index) at a specific price on or before a certain date. However, the buyer has to pay a premium for that rights and the premium is the only risk to the buyer. I also understand a call option (buy it if you think the price will increase) and put option (buy it if you think the price will decrease).

An example given on one of the websites is assume for a moment that it is April 5th, and you are following XYZ, which is presently at $29 a share. You think that this stock will go up in price in the next month and a half or so, to well past $30 a share. Knowing about options, you choose to buy an XYZ May 30th call option for $2, instead of buying the stock outright. This option gives you the right to buy 100 shares of XYZ Stock at $30 a share any time before May expiration NOTE: For this right, you pay $200. (Remember, all prices need to be multiplied by 100, since all options are usually for 100 shares). On May 30th, assume XYZ is at $35 per share. You have a call option, which can be exercised to purchase 100 shares of XYZ Stock at $30 per share. If you do that, you can then sell that stock back in the market and make a $5 return per share, or $500. Since your initial call option premium was $200, your net profit is $300. If you had been wrong about XYZ and it had gone down to $25 a share, your only loss would be the premium amount you paid for the call option, $200 ($2 per share), since the option would be worthless.

My question, based on the example above, is how does one set a stop loss order for options trading? My understanding of stop loss order is that it is used to prevent losses beyond a certain set point. If I had bought the call option and if the price goes up, I make the $300 profit after deducting the premium, but if the price goes down, can I use a stop loss order to make a lesser loss than $200 for the premium that I have already paid?

If the stop loss order can be set for options trading, please give me an example.

Thank you.

WILKENING