Brokerage or Method that will reduce overnight margin costs. - Commodities Futures Trading | futures io social day trading
futures io futures trading


Brokerage or Method that will reduce overnight margin costs.
Updated: Views / Replies:2,599 / 25
Created: by SuperBliss Attachments:3

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Closed Thread
 3  
 
Thread Tools Search this Thread
 

Brokerage or Method that will reduce overnight margin costs.

  #21 (permalink)
Elite Member
Denver, CO
 
Futures Experience: Beginner
Platform: NinjaTrader
Broker/Data: NA
Favorite Futures: NA
 
Posts: 60 since Jan 2010
Thanks: 168 given, 7 received


Jvvv View Post
If you are saying that at certain times your individual strategies could be in opposite directions, then your best approach would be to use the "sub" account approach and monitor each independently.

If you are long and short because it is easier for you "emotionally / psychologically" than just being Flat, you probably should reevaluate your trading methodology. Being Long and Short the same market in the same month is the same thing as being out, except that instead of having no positions to manage, you have two to manage (and mess up).

Thanks for the response. You make a good point. There is a chance to mess up, but there is also a chance to profit.

I'm long and short the same market the same time because different strategies may be doing opposite things. Sometimes it makes the most sense from a risk perspective, to simply exit the market. Other times, it makes the most sense from a risk perspective, to add off-setting contracts.

From an emotional / psychological standpoint the latter (adding off-setting contracts) appeals to me more because there is added opportunity from this method. Using off-setting contracts can also reduce the profit sucking effect of whipsaws. But, as you mention, there are also more chances of messing up.

It seems there are other benefits to using off-setting contracts?

The following 2 users say Thank You to SuperBliss for this post:
 
  #22 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,388 since Jul 2012
Thanks: 1,139 given, 4,387 received
Forum Reputation: Legendary


WolfieWolf View Post
Ah cool, as a means of establishing a position in an illiquid market! Thanks, that makes sense, I hadn't thought of that. I really appreciate you taking my question as it was intended, I honestly could not think of a scenario but this maker total sense.

Of course, that is not what most people use it for. I cannot think of a legit reason in Forex or futures to do it (other than the aforementioned bookkeeping).

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
 
  #23 (permalink)
Elite Member
Denver, CO
 
Futures Experience: Beginner
Platform: NinjaTrader
Broker/Data: NA
Favorite Futures: NA
 
Posts: 60 since Jan 2010
Thanks: 168 given, 7 received



kevinkdog View Post
It depends on the strategies involved, but you could just use a summer:

GoLong=0
If strategy1 should be long then GoLong=1
If strategy2 should be long then GoLong=GoLong+1
If strategy3 should be long then GoLong=GoLong+1

then just be long GoLong number of contracts

To exit, you could do the same if you used market orders

If strategy1=Long and should exit then GoLong=GoLong-1
If strategy2=Long and should exit then GoLong=GoLong-1
If strategy3=Long and should exit then GoLong=GoLong-1

Then GoLong will tell you how many contracts you should still be long.


You can get really involved with limit and stop orders, but that is just a basic example.

The logic takes a while to get correct, but the benefitrs are worth it in the end.

Thank You.

I'm going to have to take a good look at this.

Looks like it could be very helpful.

 
  #24 (permalink)
Market Wizard
Cleveland Ohio/United States
 
Futures Experience: Advanced
Platform: Tradestation
Broker/Data: various
Favorite Futures: futures
 
Posts: 2,388 since Jul 2012
Thanks: 1,139 given, 4,387 received
Forum Reputation: Legendary


SuperBliss View Post
Thanks for the response. You make a good point. There is a chance to mess up, but there is also a chance to profit.

I'm long and short the same market the same time because different strategies may be doing opposite things. Sometimes it makes the most sense from a risk perspective, to simply exit the market. Other times, it makes the most sense from a risk perspective, to add off-setting contracts.

From an emotional / psychological standpoint the latter (adding off-setting contracts) appeals to me more because there is added opportunity from this method. Using off-setting contracts can also reduce the profit sucking effect of whipsaws. But, as you mention, there are also more chances of messing up.

It seems there are other benefits to using off-setting contracts?


For newer traders out there, all the comments in bold above are incorrect. There is no risk or profit improvement to being long and short at the same time. There is no benefit to such a technique, except for ease in bookkeeping.

If anyone thinks there is monetary benefit to doing this in futures or forex, I invite you to provide an example with commissions, slippage and any interest rollover costs added in. I guarantee I can duplicate your simultaneous buy/sell, and save you money doing so.

If you have any questions please send me a Private Message or use the futures.io "Ask Me Anything" thread
The following 2 users say Thank You to kevinkdog for this post:
 
  #25 (permalink)
Elite Member
Philly, Pa
 
Futures Experience: Master
Platform: NinjaTrader
Favorite Futures: ES, ZB
 
tigertrader's Avatar
 
Posts: 5,948 since Jul 2010
Thanks: 6,314 given, 31,870 received

@Big Mike: Why do you allow this thread, and threads like it, to perpetuate? It's a source of embarrassment to the forum, and serves no purpose other than to stand testament to dunning and krueger's thesis.


Last edited by tigertrader; January 10th, 2014 at 05:12 PM.
The following 2 users say Thank You to tigertrader for this post:
 
  #26 (permalink)
Site Administrator
Manta, Ecuador
 
Futures Experience: Advanced
Platform: My own custom solution
Favorite Futures: E-mini ES S&P 500
 
Big Mike's Avatar
 
Posts: 46,240 since Jun 2009
Thanks: 29,357 given, 83,237 received


tigertrader View Post
@Big Mike: Why do you allow this thread, and threads like it, to perpetuate? It's a source of embarrassment to the forum, and serves no purpose other than to stand testament to dunning and krueger's thesis.

Honestly I agree with you, and am going to just close the thread at this point and ask everyone that is considering to do this to reconsider it. If you wan't to make a donation to your broker just buy them a nice gift instead.

Mike

Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.

Need help?
1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first.
2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses.
3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make.
4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance.
5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers.
6)
Help using the forum? Watch this video to learn general tips on using the site.

If you want
to support our community, become an Elite Member.

The following 2 users say Thank You to Big Mike for this post:

Closed Thread



futures io > > > > Brokerage or Method that will reduce overnight margin costs.

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Overnight margin on seperate but hedged accounts SuperBliss The Elite Circle 4 December 8th, 2013 01:57 AM
Noob and need to understand overnight margin Ozland Emini Index Futures Trading 5 October 14th, 2012 06:51 PM
NYSE Margin Debt At Highest Since July Means Threat Of Margin Calls High kbit News and Current Events 0 April 4th, 2012 02:34 PM
CME Goes To Margin DefCon 1: Makes Maintenance Margin Equal To Initial For... Everyth Quick Summary News and Current Events 9 November 6th, 2011 12:48 AM
CME Goes To Margin DefCon 1: Makes Maintenance Margin Equal To Initial For... Everyth kbit News and Current Events 0 November 4th, 2011 10:29 PM


All times are GMT -4. The time now is 10:55 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-18 in 0.13 seconds with 32 queries on phoenix via your IP 54.226.113.250