Recent content by reactor

Hi, A quick question for Interactive Brokers. What is the margin required if I want to short a strangle on ESX? Thanks.

Getting back on course, spiking is a good point that I haven't considered that could happen if I have a futures hedge on. I'd just have to close out the futures and take the loss on the hedge if this happens. I've had a look on the CME pdf file for strategies, which was interesting. Keep up...

Thanks for all the contributions people! Getting back on course, the reason why I originally started this thread was because I wanted to hedge an option that I have written once it is in the money and then take it off when it is not. As I don't have a large portfolio of options that I'm...

Apologies Rhody Trader, I should have mentioned the option, if exercised is cash settled, so I won't be assigned the futures contract! Once it is known what the expiration value of the futures is, I can close it out. Thanks for the prompter, it has made me aware that there maybe close out risk...

Thanks for the replies. Rhody Trader - Surely I need to realize the profit of the futures to offset against my loss from the exercise of the option? At expiration I want everything square as they can be with the hedge. garethb - I'm not considering changing position, just hedging at the strike...

Hi, I need advice on hedging and welcome any thoughts on my question. Suppose I've written a put option but the underlying now is at the strike. Suppose the underlying is a futures. If I decide to short the futures to hedge and the market carries on falling, at expiration, if I close out...

The last month the FTSE 100 has been closing the gap between close and opening prices. Have a look. It's down to you when you enter and what loss you will take before you close out if it goes against you.

Spot FXs are done interbank. There is no central exchange where all the deals go through. The market makers and investment banks post their bid offers on various systems, for example Currenex, FXall, Reuters and Bloomberg. In regards to order book entries on futures, some people will argue...

Here's an interesting strategy I read. This is for the really risk adverse. 1. Put your cash in a high interest rate account. 2. Use the interest gained to either buy a bull spread with calls or a bear spread with puts that are out of the money, depending on your directional view. 3...

or should we just get our dicks out and see who's bigger?

the truth is if you do have a strategy for making money from the markets, you wouldn't tell others. anticipation is the game at the end of the day. TA, FA are just tools. you can only beat the market if you are good at anticipating where it will go next. and as a reminder, the floor traders...

bare in mind the majority of the participants in the futures markets are hedgers. speculators and arbitrageurs are a minority.

are gaps considered as waves too?

has it just stopped IB?

what the hell?! did anyone just see that huge spike down??!!