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Joaaquinn

E-mini Sp Broker

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Hi, I want to start day trading e mini sp. What would be a good on line broker for that? I should be able to withdraw money to a non us bank account.

 

Other question, I don't know If I understand correctly the thing about margin account. I do not want to risk the value of an entire contract. Let's supposed that I loose and my account goes below the margin requirement. Can I just closed the account without any debt with my broker?

 

I do not plan to hold overnight.

 

Thanks.

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Hi, I want to start day trading e mini sp. What would be a good on line broker for that? I should be able to withdraw money to a non us bank account.

 

Other question, I don't know If I understand correctly the thing about margin account. I do not want to risk the value of an entire contract. Let's supposed that I loose and my account goes below the margin requirement. Can I just closed the account without any debt with my broker?

 

I do not plan to hold overnight.

 

Thanks.

 

There are lots of brokers about. Optimus, Mirus, Amp, Infinity, Velocity, OpenECry, Daniels, Dorman etc., etc..

 

But if I were opening an account today, I'd probably have to go with Vankar for their all round service. :2c:

 

Any should allow you to withdraw funds to a non-us account, but you'll probably have to pay a wire fee.

 

On your question about margin. Margin is effectively collateral in order to make sure you have enough money to pay for any losses. If you have say $500 per ES contract and you only have $750 in your account, then if you lose over 5 points ($50*5=$250) then you wouldn't be able to trade and yes you could close the account, withdraw remaining funds and not have any more debt. If in the same situation you held a loser for -20 points ($50*20=$1000) then you would still need to cover the additional $250 over the $750 which was left in your account.

Edited by TheNegotiator

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Understood, my concern was that if after some time of trading futures I decided that they were not for me and I have to pay the full contract value that is something about 65000.

 

So if I day trade, not hold overnight, put stop loss always and never leave any open position without being at the computer. Is not a way to loose the full value of the contract?

 

Correct? Even if s&p drop to 0. (very unlikely)

 

Thanks.

Joaquin

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Understood, my concern was that if after some time of trading futures I decided that they were not for me and I have to pay the full contract value that is something about 65000.

 

So if I day trade, not hold overnight, put stop loss always and never leave any open position without being at the computer. Is not a way to loose the full value of the contract?

 

Correct? Even if s&p drop to 0. (very unlikely)

 

Thanks.

Joaquin

 

Joaquin, there is always the remote theoretical possibility of losing the entire value of the contract if you are holding a long position (you have bought). Theoretically, if you are short (you have sold) then your risk is unlimited (i.e. the contract could go up in value to currently unfathomable prices and keep going). The thing is, if you trade during the primary session only and close all positions off before the end of the session, your risk is potentially much lower. It's possible you loose the entire value of the contract, but unlikely.

 

If you decide trading futures is not for you and wish to close the account, then you can just do that. The only liability you should have (apart from non-trading things like broker commissions and services) is when you have an open position. The other thing that you really need to be aware of for futures trading is contract expiry. If you hold a position into expiry then that could end up costing you an awful lot of money. So know when the last trading day for the contract you trade is and when the "roll" of the contract (change of front month) happens so you know when to switch to trading the new contract.

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Joaquin, there is always the remote theoretical possibility of losing the entire value of the contract if you are holding a long position (you have bought). Theoretically, if you are short (you have sold) then your risk is unlimited (i.e. the contract could go up in value to currently unfathomable prices and keep going). The thing is, if you trade during the primary session only and close all positions off before the end of the session, your risk is potentially much lower. It's possible you loose the entire value of the contract, but unlikely.

 

If you decide trading futures is not for you and wish to close the account, then you can just do that. The only liability you should have (apart from non-trading things like broker commissions and services) is when you have an open position. The other thing that you really need to be aware of for futures trading is contract expiry. If you hold a position into expiry then that could end up costing you an awful lot of money. So know when the last trading day for the contract you trade is and when the "roll" of the contract (change of front month) happens so you know when to switch to trading the new contract.

 

ok, yes always will be theoretically possibility . But taking into account what I've said: do not old overnight, always trade and close all position without leaving my computer. Has anyone has witnessed a case like this?

 

I do not feel confortable with the possibility of losing the hole contract value but what I understand is that this is a remote possibility (something that is nor very real) if I trade in the conditions that I've said.

 

I'm not sure if SP e-mini would be a good option to start day trading. What are other possibilities?

 

Thanks very much.

 

Joaquin

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ok, yes always will be theoretically possibility . But taking into account what I've said: do not old overnight, always trade and close all position without leaving my computer. Has anyone has witnessed a case like this?

 

I do not feel confortable with the possibility of losing the hole contract value but what I understand is that this is a remote possibility (something that is nor very real) if I trade in the conditions that I've said.

 

I'm not sure if SP e-mini would be a good option to start day trading. What are other possibilities?

 

Thanks very much.

 

Joaquin

 

I think it's unlikely and I've never heard it happening. But that doesn't mean it can't happen. Just so you know. I think there are lots of options. ES is decent because you get good liquidity and it's quite technical, although some people hate it. Lots of choices though if you go with a good broker.

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