Trading futues contracts

[samhill]

Thanks for all replies, are broker fees based on per contract or per trade?

[blackpowder]

Sell covered calls on your stocks farma

[farmaholic]

Farma does that company utilize the enhanced dividend tax credit ??

I have no idea. It's in a TFSA so there is no tax on growth regardless of what kind it is.

Is what you're talking about a CRA calcution for tax purposes on taxable dividend income?

Anyone?

[farmaholic]

Farma does that company utilize the enhanced dividend tax credit ??

tfsa for dividends ??

The dividends are eligible for DRIP, "dividend reinvestment plan".

[farmaholic]

Sell covered calls on your stocks farma

Teach me BP.

what strike price should I pick and how much is the call worth?

[Grahamp]

Fees are per contract. If you use a discount broker like IB you will have extremely low costs ($1 per contract commission) but you’ll have to enter trades yourself etc.

Don’t listen to brokers advice about direction of a market. If they knew they wouldn’t be a broker. They can be helpful for which market, which month, how to roll or do a spread etc.

If you are starting out in corn that is a good slow market to start with. Most people overleverage themselves by a factor of 5 or more in their future account. Initial and Maintenance margins shouldn’t even concern you because you have much more in your account than either of those.

Corn is actually a good market to learn on simply because the contract value is so small but the moves aren’t too bad so there is a bit of volatility. For example a corn contract right now is around 17,000 USD. So if you went long a Dec corn contract today and you had 17000 in your account you would never have a margin call. Corn could go to 0 and you would still be ok (we’ll I guess down 17k isn’t too good but you get what I am saying) Obviously on the short side you can lose to infinity.

I would say you should have $10000 per corn contract in your account. This should let you trade in comfort and try to capitalize on whatever inefficiency you are trying to take advantage of.

So say you have the belief that corn is going to rally through May. You could buy 1 contract and hold through your premise and then if by the end of May you are proven either right or wrong and you can take off. If I am not mistaken initial margin on corn is around $2000. Many new traders will interpret they can “buy” 5 contracts with a $10,000 account. A 40 cent move blows your account up. Or perhaps you have to sell before you would like to simply because you are unable to maintain the position. I am not necessarily advocating huge stops or hold forever, but you will trade far better with a large buffer.

However as a final warning I’ll leave you with the words of futures brokers everywhere

“Futures traders are all terminal, our only job is to keep them happy until they are gone.”

[Braveheart]

I’ve never traded on the board, thinking of it.

How many contracts in one trade should a rookie do?

Thanks for any replies.

If your not hedging, don't trade anything.

[farming101]

Thanks for all replies, are broker fees based on per contract or per trade?

Per contract.

[shtferbrains]

Autists Get a Margin Call


Paste that in your browser.

Margin call is what scares all of us amretuers out of futures and options.

If somebody can make that live it made my day.

[MBgrower]

I'd suggest sticking with hedging, not trading futures, you'll never make money trading futures. if you want to trade, do it in the stock market and stick with good solid companies that pay dividends. Sitting here waiting for the market to bottom out, then its go time.