OTC markets... CME Clearport... how does one begin trading OTC derivatives?

Discussion in 'Trading' started by B Johnson, Jan 12, 2016.

  1. I am an experienced trader, but I've always used a broker. In OTC markets, I guess I act as my own broker, but do I have to be licensed? How do I get started trading? For example, if I wanted to trade electricity derivatives through CME Clearport, how would I start? What am I missing here... thanks.
     
  2. You need $10mm to trade spec in OTC. $1mm to trade a hedge account.
     
  3. What is $10mm?

    Does somebody know how I can open an account and start trading these electricity derivatives?
     
  4. trilogic

    trilogic

    Your question demonstrates that you may not want to trade that derivative! What ISO are you versed in ?
     
  5. ISO? I'm in the US. Would I just start calling different brokers and then make an account with CME. Where would I get broker numbers
     
  6. trilogic

    trilogic

    Call ICAP in Louisville KY. they have all the markets spot, forward options
     
  7. Hmm
     
  8. CAn you recommend a book that would show me how to get started in otc markets... or how would I learn if I wanted to get into this field? Don't say LinkedIn either...
     
  9. Sig

    Sig

    If you don't know what an Independent System Operator is or why it matters what ISO you're in then you have not even the faintest idea how electricity markets work. If you want to just throw money into something I'd recommend binary options maybe? A lot less work to set up your account and the same random results.
     
  10. You're right, I don't know how electricity markets work yet. I figured I would learn the trade mechanics first.

    If anybody has ever actively traded an OTC derivative, I'd appreciate it if you could offer some advice on how I would even approach this... I've been "googling" but nothing so far.
     
    #10     Jan 12, 2016