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The transition to Futures trading

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TH,

The biggest issue preventing me from moving to futures ASAP is the minimum SPI contract size of 1. My risk management requires the ability to (occasionally) deal in a contract size of 0.2 which as far as I am aware cannot be done on the SPI (but can be done with CFDs).

Once I have successfully scaled a further x5 I can then move safely to the SPI.
 

I'm glad to hear that.
I like to come on here and get excited about trading and the potential.
The more that things begin to click the more excited that I get.
Obviously with the right risk management, mindset, knowledge, hard work etc. it's possible.

The potential is staggering and exciting.
I'm committed to doing whatever it takes to realise this potential.

This is the only outlet I have to share my enthusiasm haha
If I tell anyone else they will simply think I'm either delusional or an arrogant douche
 
CanOz said:
I reckon, my best guess...is TH here is pocketing 15-30k for a stellar day. I could be a little low here. He's likely got a 10k daily stop.
Click to expand...




Yep gotcha. Luckily you are trading the ASX200, The other CFDs are just ridic as far as spread cost vs futs.
 
Last edited by a moderator:
At the risk of getting way off topic here (sorry Pav), a significant business risk seems to be being kicked out by whichever bucket shop, err CFD provider, you are trading with if you are too successful. I haven't been able to dredge up any relevant posts via Search, so would be grateful for any comments on this.
 

Just watch for slow entries and slow exits especially when its moving against you. You should also have real data rather than the crap they give you.
 

Read this through, will see if i can dig up some more later....

Nothing to something scalping system
 
pavilion103 said:
Many will think that I suffer from delusions of grandeur but I see no reason why in the near future profit of $100,000 can be made (50 points per week x 2 contracts).
Click to expand...

CanOz said:
Quite the contrary, i know guys that are making over $100,000 per month...their trading accounts are in the millions, former prop traders.
Click to expand...

Pav, dream bigger! Go to 2 contract as soon as you can, then ask TH to give your name to the Prop shop. And you will really experience what sizing up means!

CanOz said:
I reckon, my best guess...is TH here is pocketing 15-30k for a stellar day. I could be a little low here. He's likely got a 10k daily stop.
Click to expand...

You are under-estimating would be my estimate


I thought you mentioned about getting into liquidity issues with IG? Can you disclose at what $/tick level you are getting these issues? If you are not yet doing a few SPI then I am a bit surprised that you are having issues already. Although I must admit it's been a long time since I last traded with IG.


If you are consistently profitable the bucket shop won't necessarily kick you out. They should be smart enough to know you are profitable and simply hedge your trades... like as if you are doing DMA but only with futures... instead of taking up the other side of your trade.

They kick you out only when you are bending their rules or finding a glitch. Here's another story from years ago.

https://www.aussiestockforums.com/forums/showthread.php?t=14588&highlight=result
 
Trembling Hand said:
Just watch for slow entries and slow exits especially when its moving against you. You should also have real data rather than the crap they give you.
Click to expand...

Used to get that on occasion with larger position sizes and have now figured ways around it.

It's very rare now that I get the dreaded "Your order is being handled by the dealing desk" message.



I trade sizes between 0.2 and 10 contracts (ie $5 to $250 per tick). It's at the 10 contract size that issues crop up at times.


skc said:
They kick you out only when you are bending their rules or finding a glitch. Here's another story from years ago.

https://www.aussiestockforums.com/forums/showthread.php?t=14588&highlight=result
Click to expand...

Thanks - will read this one carefully.
 




Curious to know why you think those that trade cfds are crazy? Recently i have meet someone that makes quiet a huge lot of money trading cfds/fx. Some months he loses huge money but overall in positive big time. Jan has earned him $82k trades US cfds/fx.
 

Here is a screen shot I just took from my cfd provider. The top one follows the spi, the other is their own composite index.



If I was to buy 25 cfds at market my commission would be $0, and the spread is 1 point.

How much does it cost round trip to trade 1 spi fut?
 

10 AUD on Interactive Brokers...
 

$6 from IB
FTSE $2
DAX $1.70

From memory I think!
 
Ok so I can trade to a limit of 500 SPI cfd's, equiv to 20 futures contracts.

So to trade 500 cfds costs nothing per trade, 20 futs contracts costs $200.
 
beachlife said:
The spread on the UK100 cfd is 6 points now, Germany 30 also 6. Will see what they are later when Europe wakes up.
Click to expand...
Yes those are the outside hours spreads for the March futures. The spreads on both Germany 30 and UK 100 normally reduce to 4 points inside hours.
 
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