How can we actually make money from trading options on futures?

Question by : How can we actually make money from trading options on futures?
Since options on futures mark-to-market daily, are we expected to buy and sell options on futures everyday? Somewhat like a day trader?

How can we actually make money from trading options on futures?

Best answer:

Answer by my16pawsYes you can, if you predict the future properly. Futures allow you to either purchase or sell a certain commodity at a set price.

So assume you purchase and option to Buy City-Bank share @ 50.00 on April 15th 2011. If on April 15th the shares are selling on . . . → Read More: How can we actually make money from trading options on futures?

Difference between ETFs and futures trading?

Question by Fan M: Difference between ETFs and futures trading?
I understand how both operate, but generally speaking – for the sake of argument – suppose an ETF only invests in soybeans. How strongly linked is the pricing between soybeans in that ETF and on the commodities market? If the price of soybeans in futures goes down 20% in let’s say a 2 month time span, will the price of that ETF (which only invests in soybeans) also follow suit and go down 20% as well?

Best answer:

Answer by Robert Myes less fund expenses, generally speaking.

Know better? . . . → Read More: Difference between ETFs and futures trading?

Discovering The Opportunities Related To Futures Trading Autopilot

Discovering The Opportunities Related To Futures Trading Autopilot

Article by Lan Turner

The world wide web has helped to open many business possibilities but 1 of the most affected business areas have been observed with day traders. In the past, forex stock and futures trading was limited to investors taking your cash for you and investing it into the several markets.

The problem many investors had with this is whilst the investors praised themselves when they found success for your portfolio they had no accountability when it came to their failures. When the internet expanded the world of . . . → Read More: Discovering The Opportunities Related To Futures Trading Autopilot

I know stocks and securities trading but I want to get into options or futures trading. Where should I start?

Question by traderseeker: I know stocks and securities trading but I want to get into options or futures trading. Where should I start?

Best answer:

Answer by zman492Start at the CBOE Learning Center at

http://www.cboe.com/LearnCenter/default.aspx

and go through their free tutorials, classes and webcasts. After that read one or two good books about options trading. If you stick with books in the bibliography at

http://www.cboe.com/Institutional/Bibliography.aspx

you will know they are good books. My favorites are are “Options as a Strategic Investment” by Lawrence McMillon and “Options Volatility & Pricing” by Sheldon Natenberg but I recommend you browse different books at a large library, . . . → Read More: I know stocks and securities trading but I want to get into options or futures trading. Where should I start?

How do the futures trading take place in metals on the London Metal Exchange?

Question by azam z: How do the futures trading take place in metals on the London Metal Exchange?

Best answer:

Answer by JoIt’ll take forever to explain futures trading.

here’s a good site: http://www.thepitmaster.com/futures/trad1a.htm

Give your answer to this . . . → Read More: How do the futures trading take place in metals on the London Metal Exchange?

how is taxation done for gains in futures trading in the scrips?and at what rate?

Question by sam: how is taxation done for gains in futures trading in the scrips?and at what rate?
futures and options are derivative instruments which gain their value from underlying instruments.
there is confusion over whether they should be taken as speculative gains?

Best answer:

Answer by ShibbolethI think I answered this question before, but I’ll put something here, too.

It’s possible for you to have gain on the contract and on the underlying product. If you trade contracts on a secondary market, you can have a gain if you buy a contract for 8 and sell it for 9.

You can . . . → Read More: how is taxation done for gains in futures trading in the scrips?and at what rate?

what is the best futures trading platform?

Question by Hungton L: what is the best futures trading platform?
I know there’s XpressTrade, but are there any other online platforms which are better?

Best answer:

Answer by websavvyinvestorCan’t judge the futures platform, but the best options platform and broker by far is Think or Swim (www.thinkorswim.com). They’ve added forex and I believe are adding futures.

Give your answer to this . . . → Read More: what is the best futures trading platform?

Whats the difference between investing in the stock market and futures and options trading?

Question by NoLSMoKEzLz: Whats the difference between investing in the stock market and futures and options trading?
What is the difference between investing in the stock market and futures and options trading?

Best answer:

Answer by JoeyVLet’s see:

Investing in the stock market means that you are buying an ownership interest in a corporation which provides valuable goods and services. If you invest broadly enough in stock markets, you are betting that global growth will happen during the holding period which accrues to the owners of global corporations.

Trading in futures means that you think that pork bellies are going to . . . → Read More: Whats the difference between investing in the stock market and futures and options trading?

What Is Futures Trading?

What Is Futures Trading?

Article by Ryan Lee

Futures trading is the practice of trading commodities. You may have heard stories about people getting rich with futures trading, but as with all types of investments, there is a risk involved. If you do it incorrectly you can end up thousands of dollars poorer, however done correctly, futures trading can be very lucrative and you could find yourself a few thousand dollars richer.

There are many factors involved with becoming successful at futures trading. On the one hand, you may feel as if you want to make your money . . . → Read More: What Is Futures Trading?