Trade Commodity Futures » commodity option trading

In India why is options, swap trading in commodities banned ?

admin — Tue, 13 Jan 2009 05:10:38 +0000

Several days with no answers means you may have better luck finding the answer behind one or more of the links available here:
http://search.yahoo.com/search;_ylt=A0geu86s4lNGXYIAgWtXNyoA?p=India+options+trading+commodities&ei=UTF-8&fr=yfp-t-501&x=wrt

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Is there a specific money requirement to be able to trade commodities, options, and/or currency?

admin — Sun, 11 Jan 2009 02:54:44 +0000

I hope there isn't, because I only have $2,000!

Usually they want 5000 dollars to start because of transaction fees but call them and tell them you'll have more soon. you can control 200x the amount you invest so you can control 40,000 worth of Euros but with so little if there is a move downward in the market you could get called and lose your 2K instantly. Commodities is not for the weak of heart. Its best if you have about 20K-50K to start. but you can get a practice account to see how you would be doing right now if you had that money.

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Has any one done turtle trading and would you recomend it??

admin — Thu, 08 Jan 2009 23:34:42 +0000

Have you made any money or would you trade options or commodities instead!!

Have you read "The Complete Turtle Trader"?

I ask because this term means so many things to so many people.

In the original use of the term…Yes, I am following a breakout system now. The problem is I'm not sure I have the stomach to continue. It makes huge profits, but in between are long periods of losses. The extreme swings are killing my nerves.

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Options Trading Tips – Part 1a

admin — Thu, 08 Jan 2009 19:46:22 +0000

Learn exactly how to trade options to make a monthly income, make a killing in the market whether it goes up or down, day trade with confidence, and much more.

Duration : 9 min 3 sec

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Technorati Tags: options

Copper Commodity Option Contract Question.?

admin — Wed, 07 Jan 2009 02:44:54 +0000

I am new to commodities options but familiar with options on stocks. I want to buy a put option as seen herehttp://data.tradingcharts.com/futures/puts/HGU8_2008-03-05.rp.html for Sept 08 copper. I am assuming that the 240, 275, 325, and 340 are the strike prices 240 being $2.40 what I want to do is protect myself in case copper heads back down and is trading around $2.90 or so by Sept of this year. What I can't seem to figure out is the appreciation of the option contract on stocks when options go into the money they appreciated $1.00 for every $1.00 drop. What I am asking is if I buy the Sept 08 240 contract and copper is trading at $2.90 on Sept 08 how much is the option worth I assume it is worthless do to the 240 being a strike price of $2.40.

If possible could someone recommend the best option long put play for me to purchase to protect myself "if" copper drops below the $3.00 mark by Sept. Also why are there no ITM options and all OTM options to purchase?

I have never traded options on futures, so I am simply passing on what I found searching the web.

First, the underlying for the future is 25,000 pounds, not 100 pounds, and the underlying for the options is one futures contract. Hence for a deep in the money option a one cent per pound change in the price of copper will change the option cost by $250.

http://www.oxfordfutures.com/specs/copper-futures-options-contract.htm

That probably explains why you had trouble figuring out the appreciation of the option contracts.

I am pretty sure the reason you only saw OTM options is the the source you chose for quotes only showed contracts with open interest. At another source I find strike prices ranging from 195 to 800.

http://sites3.barchart.com/pl/vsn/optqte.asp?sym=HGU8

I don't think anyone can recommend "the best option long put play" for you because what is the best play for one person may not be the best play for another person wanting to do the same thing. That is like saying what is the best auntomobile insurance to buy. For one person it might be a $250 deductable, for another a $1,000 deductable, and for a third the best choice might be no collision insurance at all.

I hope this helps.

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When trading options, I realize that commodities rise and fall. What is the strategy to follow regarding makin

admin — Mon, 05 Jan 2009 01:46:57 +0000

g profit from those rises and falls?

Trade in large volume to avoid losing a large percentage of your gains on transaction fees.

Don't stick to a single tactic; trade based on solid market assumptions gleaned from historic behavior of the commodity you are trading.

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Where is there more beginner trading potential. Stocks, Options or Commodities?

admin — Sat, 03 Jan 2009 02:38:45 +0000

I have many hours to spend in teaching myself how to do day trading for Stocks, Options or Commodities.

Does anyone have any suggestions on which market would be have the least complex learning curve?

They are all complex but Options are the most complicated and aren't for beginners. As a matter of fact most big firms don't allow brokers to trade options until they have several years of experience. Commodities are not considered quite as complicated, but are definately not for beginners. Start with stocks. I don't recommend day trading, most day traders lose way more than they win.

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is it possible to make money trading options on commodities?

admin — Thu, 01 Jan 2009 02:03:37 +0000

easy

buy & sell options at top & bottom of weekly chart

find it thr technical analysis

get aptistock freeware

with buy & sell signal chart

details copy paste link

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Forex Mini Account – Am I Eligible?

admin — Wed, 31 Dec 2008 05:02:17 +0000

If you were just learning about Forex Markets a good idea for you would be what is called the Forex mini account. The mini account is also great for those who want to start off with a fairly low investment. A mini account can be opened with only $250 while a regular one has to involve a minimum of $2,500. The option of the Forex mini account is definitely a more realistic option for smaller businesses that would like to get involved in the world market with very little available capital.

Many people wonder if those who are owners of these Forex mini accounts suffer any disadvantages because of the need for less capital. In most cases they do not, and than can definitely be a huge draw to those looking at the world market and not wanting to get taken advantage have by larger companies. Free trading platform and small spreads are just as easily available to Forex mini account holders as they are to anyone else involved in the Forex markets.

There are also some additional benefits to being a holder of a foreign exchange mini account. Those who own these mini accounts only needs fifty dollars as a margin deposit for a ten thousand dollar trade. This benefit of having leverage is one of two hundred to one, when you own a mini account. This means the trader can trade more in a commodity than the amount of money they available to them.

There is also another advantage with an FX mini account, in regards to losses and minimizing its losses. This type of accounts contract size is 1/10th the size of standard contracts and this is how they can save themselves from too much of a loss. These mini lots in a mini account are excellent way to save money in potential losses, depending on you set up your stop loss.

Also with a Forex mini account you are allowed more flexibility in regards to customizing your trades and minimizing your risks. This means that those with less money in their bank account can do better in this type of account. They can feel more comfortable in using the mini accounts because of the advantages and the fact that they have less risk because of them. This can help those with smaller bank accounts have a chance to invest in more areas without as much of the risk. In the end, Forex mini accounts are the best way to go for those with not as much cash available to them and yet want to minimize risk, and still be able to trade on the world market.

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Lifestyle Trader Software to learn when to get in and when to get out of trading?

admin — Tue, 30 Dec 2008 02:13:00 +0000

Has anyone had any experience with this trading software? I am seroiusly looking to buy this for trading commodities, forex, stock and options.

I love it when somebody tries to sell "lifestyle" as opposed to what the software can actually do. I've never seen someone put it in the product name before. "You don't have to spend hours in front of a screen". You are buying from or selling to someone else. Why are they taking the opposite side of the trade? Are they stupid? Or are they seasoned professionals who approach trading as a business?

Lifestyle Trader has "two magic lines". This appears to be a simple moving average system. You can look on stockcharts.com or yahoo finance and see prices plotted against moving averages. This type of system can catch huge moves at some times and get you whipsawed at others. The trick is to know when to step back from the market and let it sort itself out. He doesn't seem to discuss this. He also seems weak on money management. (That's the critical plan which keeps you from allocating too much money to one trade and getting wiped out by a few losers.) Lifestyle Trader claims to work on everything. Why do you want to jump from one thing to another all over the place? You won't gain an understanding of anything.

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