What is a Must Know...??

[VTK]

Hey peeps....!


I am trading Spot FX but would also like to trade e-minis.
I have basic understanding of what futures are,but i am not sure what is a MUST know before you start trading them in terms of contract and market which are bit different than Spot FX.
For example understanding rollover,expiration and what contract month to trade seems quite important.Margins also..
Any other stuff that i should know similar to those above??
Also if anyone could post a helpful link,it would be just great...

Thanx in advance!
VTK

[VTK]

Come on,guys...
Am i really asking such stupid question or what??
19 views,and not a single reply..??

I am just unsure here,so would like to hear from some of you which are more experienced..

Cheers
VTK

[TradeRunner]

It's a difficult question to answer because we don't know what you already know and I don't supose you are going to be happy with this reply (and I'm not an expert or experienced)

• You must know how to follow your trading plan
• You must know the diference between trading and gambling and have the self awareness to know when you move between the two
• You must know the contract is compatible with your risk requirements (contracts vary in size and volatility)
• You must know you have a trading edge and that your profits can overcome your trading costs
• You must know how to extract youself from a trade in the event of a disaster (e.g. PC crash, internet drop out...)

[VTK]

Thanx for reply Runner..

I am trading Spot FX but would also like to trade e-minis.

....means that i know how to trade,have mine edge and so on..but i am just unsure of all little "technical" differences between Spot FX and futures markets.I have learned about,rollover,tick worth,contract worth,contract symbol,expiration months and their symbols,margin rates for different contracts and so on..
What i have written above are those "little "technical" differences between Spot FX and futures markets"
So i just would like to know am i missing some of those little "technical" stuff..??
I know that core of mine strategy is going to be same.
Cheers,
VTK

[BlowFish]

If you can manage SpotFX (which usually means you are having a bet with a bookie rather than ever 'trading' anything) you should find a proper instrument on a regulated exchange refreshing. (If you use MBT or IB or one of the few 'real' retail brokers to actually trade currency then ignore my first sentence).

I suggest you start with the exchanges website you will find a metric cr*p ton of information and education. Next port of call should be your broker. They should be able to help you make the transition.

[JBWTrader]

VTK go to the CME website to look at the emini contracts etc

Then I reccommend doing Sim trading for as long as it takes. ie until you prove you have an edge...can you prove this with your setups ? if not you will flitter your money away fast...

Best
John

[VTK]

Originally Posted by BlowFish (If you use MBT or IB or one of the few 'real' retail brokers to actually trade currency then ignore my first sentence).

BlowFish,have just started doing mine business with IB.For now,can say they are top notch.Anyway,that is one of the reasons i wanna trade e-minis.Can do it from same acc as Spot FX.
Have read bunch of infos about futures in past few days and now when it have settled down in mine head....it is getting clearer and clearer...
Basically knowing what is tick worth,when to rollover,what is day/overnight margin,when is expiration date of contract,when are most liquid times to trade it and maybe few other little things are what one should know so that he/she does not loose money out of ignorance.
Guess you got me what i am up to..not worried about stuff like strategy,risk management or similar...that is what i got..
It is more like after driving car that have automatic gear shift,learning how to drive one with manual gear shift.It is same cr*p,just in another package

Originally Posted by JBWTrader Then I reccommend doing Sim trading for as long as it takes.

Sure i will do some demo,no worries JBWT..

Thanx guys!
Regards,
VTK

[BlowFish]

I have been pretty happy with IB. You can trade a whole bunch of stuff from one account.

In he past I have recommended the "The futures game, who loses, who wins, and why" by Tewles. To be honest I am not sure it has what you require. It has a good section on risk and bet sizing, covers most the stuff Van Tharp does. I seem to recall it being fairly comprehensive.

Really there is not much more that can go wrong with futures compared to other instruments.

[thetatrader]

You need to know the liquidity of what you are trading if you are trading large size. also Know when the cash market opens and closes. 9:30 to 4:00 east coast. for eminis. Liquidity really dries up in the globeX. Also bonds and grains have differnt open and close times. all should be avalible at the CMEgroups web site.
One other thing is know your brokers margins intraday and overnight because your broker will liquidate your position overnight if you don't have the margin.
Say your day margin is $500 per contract and over night is $2750 and you have 10 cars on your margin will jump from 5K to 27.5k at the close. 4:15pm. I don't think that happens in fx and they don't liquidate sim accounts.
Just now what the margin r for your product and know if your going to day trade or swing trade. and you will be okay.