Futures Trading Blog

Akay asked:


….firms that trade perhaps futures, currencies, stocks etc?

SUNDEEN

Ninja Trader asked:


I have been trading stocks since January 08 and this will be my first year filing a schedule D form. My stupid self did not know about wash sales until a few months after starting to trade stocks and I’m scared to death about filing my taxes this year. The brokers I have dealth with this year are ETrade and Think or Swim. Any information would be great.

By the way, I have also traded futures this year, which to my understanding, you don’t have to list all trades on the schedule D, or worry about wash sales, Right?

CHITTENDEN

RAJU asked:


name of the co. is RCA or rca.org engage in financial activity where dealers trade in stocks and futures, one of the trader is Patel. please give site details

CASSEUS

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

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

Akay asked:


….firms that trade perhaps futures, currencies, stocks etc?

KLAWITTER

THE asked:


do you know where can i learn more about how to trade it??

WALDRIDGE

travis d asked:


Ive never traded before but not exactly a novice to the markets. Looking to trade some etf’s and possibly some futures. Does anyone have a platform they could recommend? Looking to go long and short. Or any books or websites that would help me get started. Just looking to break the ice, little nervous about jumping in.

FAIR

libertyrsa asked:


They apparently trade on the Hong Kong Derivatives Exchange which I also can not find any information on.
Both companies have legitamate websites but that doesn’t mean anything really.
If anyone has had any experience with this, please let me know.
Thanks

SAMMET

Mars asked:


What exactly is it? Examples please? It is not stocks, right?
How do you trade?
Thank you.

APPEL