Danny asked:


When selling a futures contract, is the process like selling an options contract? For example, when selling a futures contract, is the seller also the writer? Or are there no writer since in the exchange, everything is standardized?
So if that’s the case, can I just decide to sell any amount of contracts as I please? And as a buyer, are there premiums that must be paid? Are Futures like…more intense/volatile versions of Options (a stretch)?

I know that unlike options and stocks, the settlement is at the end of each day, so therefore, you realize your losses and gains daily, but does that mean that your “account” is debited and credited with the dollars lost and gained?

For options, there are no losses in writing a contract, so is that the same for futures? If I sell a futures contract, and no one bites, does nothing happen?

I think I have a decent understanding of Futures, as a derivative, but the logistics in trading seems considerably less straight forward than Options trading. Also, what’s the difference between the exchange and the clearinghouse? One is the platform to trade on, sort of like Ebay, while the other is…to protect the traders,…so (a stretch) but SOORRTT of like Paypal (more so for the seller)?? But then do they work together outside of the traders knowledge? As in, do I buy futures from the exchange? or from the clearinghouse? Or is the clearinghouse within the exchange?

Thanks everyone in advance. This is for a futures class, and the concept is so foreign. Thanks again!!
One more thing! I understand this is all REALLY mostly risk trading, and the commodities dealt with are rarely..dealt with. But, at the end of the day, where do the commodities go? For example, a futures option on corn that’s due to expire a year from now. I buy it…sell it, someone buys it…sells it, and as it gets closer to the exp date, for the farmer who put it on the market in the first place (or…do they do that?) what does HE do with the commodity? Or if not the farmer, for WHOever has the ACTUAL commodity, what happens to the it?

wirelessforless2000 asked:


Whoever gives me the most DETAIL will get the 10 points!

What do the following mean:
Buy to Open
Buy to Close
Sell to Open
Sell to Close

Im trying to buy calls, once I buy them how do I make money on them? How do I sell them exactly?
When buying calls is it true the most you can lose is the amount you invested?
Also, on the screen I see some stocks that say Calls [55] and other stocks that say Calls [45] at the top of the screen, its not the price so what does it mean?
When buying calls under quantity if I put 1 does that mean im buying 100 shares?

Alessandro asked:


It should let you buy and sell stocks, short sell, buy on margin, and buy and sell options.

forextrade1970 asked:


Hello. I want to trade options only long calls and long puts instead of trading just stocks. The problem is that when i trade in the money contracts for the next month for example the expected profit is lower than the risked money. Is there a solution to this problem? I mean i want to risk as little as i can and my profit to be higher than the risked money.

Thanks

skahhh asked:


and or do they short or buy puts and calls? What is the defined rate and trading strategy of a day trader? Do they look for news or how fast a stock is rising? What?

Doug M asked:


One of the indicators I have noticed indicating a peak in the market is heavy volume on down days and light volume on up days. Along with the above the CBOE put call ratio drops to less than 0.75 for a couple of trading sessions. Livermoore used a list of stocks which fell before the market peaked.

mrdanman@sbcglobal.net asked:


I like to watch the CALL and PUT options on the stocks that I own.

Now, because of the World condition and Gasoline prices, I would like to watch the same thing on Crude Oil.

I do not care about Oil Companys, per se, nor do I care about Futures, unless I have to start learning about those.

I am thinking there are CALL and PUT options on CRUDE OIL! What are the symbols?

kumar asked:


i am still confused about option trading
I know when u r bullish about a stock ,u can buy call option or sell put option.
Suppose I think that a price of a stock is going to rise in a month or two. having decide to buy a call which should I buy—— There r a number of 1 month calls trading with different STRIKE PRICE. at which price shouldi buy
What IS the maxium premium that I will give ?
what is the maxium amount of stocks that I will buy in a lot? Suppose I buy at the lowest strike price what will be the premium?? What is deep in the money that trades at a higher premium What is out of the money that trades at a lower premium

youroutsider asked:


New to this area. Any help is great.!