If you have $2000, you are trading a $2000 account from a risk perspective, not a $40,000 account, regardless of what a prop shop will provide...
The futures price will be the spot price, plus or minus the cost of carry, interest, silo storage, etc. (whatever is appropriate to the specific...
One thing to keep in mind when trading in a margin account, whether futures, stocks, indices or options, is that you are liable for all losses,...
That's true with equities, but with futures you are generally paid interest on your margin balances. Jessie
In essence yes, (with equities) but it's not risk free, and that is in part what you are really paying for. There have been large houses taken...
It's not an interest free loan. In the case of securities, you DO pay interest on your margin balance to the brokerage firm that carries your...
The answer is that YOU have actually agreed to put up the difference, and pledged your assets to do so, you just don't necessarily deposit it in...
There are also designated market makers for the CBOT gold eminis, so the volume figures are deceptive. You can get free real-time quotes with bid...
LLC is really cheap & easy to do, and you can basically divert as much or as little income as "salary" as you wish. It gives you a lot of...
I don't know about the equities side of things, but the NFA website will tell you exactly who is exempt and who requires registration when trading...
You might get executed at a slightly higher price, but it is unusual. When the market trades through your price, your stop order becomes a market...
It's also not uncommon for people to have accounts traded by a number of different CTA's, and want to use the same cash "pool" for margin. Most...
You may also want to look into creating an entity for your trading. The regs are generally somewhat different for small business policys, for...
An option that is out of the money has no liquidation value at expiration. It simply expires worthless. Jessie
The NFA also has info on the regs and disclosure documents, and they are really helpful in getting you started if you let them know you are new....
When you worry about things like default on exchange traded options or futures, it is important to remember that you don't really trade with...
I don't know about cattle, but in beans and corn, you can often do 1,000+ with no more than a tick or two slippage, and hundreds are no problems...
Beans have rallied largely on the basis of soymeal, which will be fed as a replacement for the bone meal and animal protein which is a large...
It's pretty easy to work your way out of a position that size (or even much larger), you don't have to do it all at once. You can lay off the risk...
I know of at least several prop firms in Chicago that trade that sort of size on those contracts. One prop trader I know who does that sort of...
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