I have now funded my IB account and waiting for activation. My next step is to find symbols for indices and minimum stake for that index. Initially I will try my hand at a low volatile index with low stake as well. Please give advise as to how to proceed. Are there mini futures for every major index? Thanks so much
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A couple of things:
'stake' is an expression used for spreadbetting and is variable. When you are trading futures there is a fixed amount per point which equals 1 contract. On ES (S&P emini futures) it is $50 per point per contract. Each point is divided into four, so one tick is equal to $12.50.
So if you want to trade at $50 per point you would buy 1 contract, but if you had deep pockets and want to trade at $400 per point, you would buy 8 contracts.
If you are unsure of these things, such as which future to trade, are you really really sure you are ready to trade futures through IB? What have you been trading up until now, and why don't you want to continue trading that stock or future? With respect, it is very foolhardy to try and trade something you're not sure of, which is what your post suggests to me. 😀
'stake' is an expression used for spreadbetting and is variable. When you are trading futures there is a fixed amount per point which equals 1 contract. On ES (S&P emini futures) it is $50 per point per contract. Each point is divided into four, so one tick is equal to $12.50.
So if you want to trade at $50 per point you would buy 1 contract, but if you had deep pockets and want to trade at $400 per point, you would buy 8 contracts.
If you are unsure of these things, such as which future to trade, are you really really sure you are ready to trade futures through IB? What have you been trading up until now, and why don't you want to continue trading that stock or future? With respect, it is very foolhardy to try and trade something you're not sure of, which is what your post suggests to me. 😀
Thanks for honest views.I am going to do lot of paper trading and when I do for real, I would like to go for lowest posible stock. and low volatility so that I donot get wiped out.
Am I right to believe that mini dow is $5 per point and FTSE is £10 per point. At the moment I am collecting symbols for various indices.
The main reason I have opened the account with IB is to trade Bull spreads using puts .There is more info about this on my thread selling put options. I would welcome more comments on this idea as well.
Thanks
Am I right to believe that mini dow is $5 per point and FTSE is £10 per point. At the moment I am collecting symbols for various indices.
The main reason I have opened the account with IB is to trade Bull spreads using puts .There is more info about this on my thread selling put options. I would welcome more comments on this idea as well.
Thanks
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Osho - the most important thing to prevent being wiped is sound money and risk management, which I'm sure you know all about.