Difficulty trading Index Futures through high margin requirements?

[Ormondroyd]

You need to think about the DJ EuroSTOXX 50 Future on Eurex.

The average punter perhaps isnt switched on to the growth of this contract.

Trading on fumes before november last year, now its volume is regularly bouncing around the 250-400K level daily. 10 euros a tick, exchange margin per contract only about £1800, great liquidity, long trading hours (extended to match the hours of the DAX contract) from 8am to 7pm UK time, rarely any more than a 1 tick spread. Charts really well too. Give it a look.

Might want to check out www.easy2trade.com for your trading platform, decent commissions and £5K minimum deposit, unlike others with their 25000 euros. Humbug.

 

[cala65]

different contracts , different margins, if you only put up 5k then you'll be called on your first losses and have a 2/3 lot trading limit - more messing around transferring money etc etc

is 5k a sensible level to start trading futures? i dont think it is, if you only want to trade with 5k then should be spread betting. if they r after the really small account , is this a viable long term business?

futures are not for the feint hearted, i honestly believe that you need to provide yourself with as much comfort as possible when trading - i dont think 5k is sufficient!!!
good luck anyway.

 

[rejji]

Ormondroyd - Didn't you play for Aston Villa back in the early 90's?
I do agree that the EuroStoxx contract is well worth looking at for the smaller trader. A really good swing has been seen this morning, and I like the amount of volume traded. Eurex is so often ignored by UK traders as most seem to go for US stock trading, which I personally don't have the time to devote on the evenings. I have noticed that even in the far out months there's plenty of liquidity, making the longterm trade more attractive than say a FTSE/DAX contract.

 

[Ormondroyd]

I do appreciate your concern cala, and yes it is right you should not trade when you dont have the money. However...

Trading a couple of contracts such as EuroSTOXX still leaves you plenty of room for manoeuvre, as long as youre a disciplined trader. I personally dont want to be in the business of getting stung on CFD trading spreads to pay for their livelihood when I've got direct access to the order book.

Discipline as a trader is very important, so if your charts are right (or even if youre having a punt), entering a stop to cap your losses, and then moving your stop up or down to follow the market price is a sure-fire winner. Youve got it wrong? So what? Your stop has protected you. Accessibility combined with flexibility is the key.