I have some questions on how to trade es mini. Currently I trade spx options and like it but want to play es because of trading hours benefits with es I noticed that es options are half price. Is that correct ? Can exchange fee and commission fee reduced ? Is that the reason , retail traders prefer Spx? buy or shorting es is better than options calls and puts ? Thank you in advance for helping newbie
The ES futures is $50X the index and the .SPX is $100X the index. You can reduce ES futures and option fees by leasing a IOM seat on the CME. https://www.cmegroup.com/company/membership/membership-and-lease-pricing.html.
There are advantages for trading ES futures over SPY and ES options over .SPX. To get risk based margin on .SPX, you need a larger account and have to qualify for Portfolio Margin. SPY is a smaller contract and Reg-T does not provide an offset for SPY vs .SPX. ES options can hedge ES futures and are all risk based SPAN Margin. https://www.cmegroup.com/clearing/risk-management/span-overview.html
Hi Robert you mentioned that "ES options can hedge ES futures and are all risk based SPAN Margin." How would that work in case of both execution sequence and it effect on Margin on a pir a) Married pUT = Long ES and LOng ES put ,, Do we need to have teh LOng PUT first BEFORE Long ES Futures? , platform can't perform a combo order can it? Overnight the margin in Married for the ES long should be reduced because of Married pUT b) Covered call = Long Es + Short ES Call .. do we need to be LOng Futures first then sell teh call? Same question Could you please elaborate and same for MES combo!
Each broker offers a different platform. Some might be capable of replicating CME exchange margin in Realtime, and some can't. Some charge more for margin so they do not have to load a SPAN file. The CME only calculates margin at end of day-between 4:15 and 6pm est. The CME offers risk offsets.
Ok that is CME but what would you offer as an example and what about sequence of execution becasue unlike Spreads ( Futures to Futures or Option to Option) the cross margining does not seems to be automatic AT the time of such Combo Could you please look at each example Married Put Covered call
I do not understand the question. In a futures account you can do both. You can leg it or do it as a User Defined Spread. Maybe you should call me one day or try it on a demo of CQG QTrader. https://www.cqg.com/products/cqg-qtrader
Question is in case of Married put in order to get the advantage of a bought Put's protection in terms of reduction on margin of the underlying Long ES future - If I leg it do I have to do the Option leg first? becasue if I don't then I will have to put full margin on the futures? until I have the bought PUT in place I am assuming here taht having a ATM bought put 1) My MArgin to open a underlying LONG futures goes down and 2) I won;t get margin call on teh Futures position becasue there is a protective put alread in place in same account If as you say I do it as User defined spread of Future and OPtion does it automatically calculate down all the margin? = Some margin for a protected Futures position + Option premium I will try the CGQ Q trader demo but 1) I already have a CGG desktop on same PC, will it conflict and 2) will the demo have Option on futures?