Brokers options futures

This platform exudes convenience and simplicity without giving up functionality. DeCarley Trading brokerage clients. The goal of this book is to enable traders to create a trading environment lacking peripheral distractions or stress which, in turn, mitigates emotions and improves the odds of trading success. See the links below for video and text. Their accuracy or completeness is not guaranteed. The practice of option selling is a controversial method for commodity option traders to partake in. Information provided on this website is not to be deemed as an offer or solicitation with respect to the sale or purchase of any securities or commodities. NOTE: There is a substantial risk of loss of money in trading futures and options. Too many traders flock to the convenience of commodity ETFs such as USO, WEAT, UNG, etc.

Any decision to purchase or sell as a result of the opinions expressed on DeCarleyTrading. Join us to discuss how to get started selling options on futures. The information and data contained on DeCarleyTrading. Carley Garner, invited to sit on a futures trading panel with some of the best in the business. We also made some guesses regarding the fate of the crude oil market. New York hosted by TheStreet. Eastern for a free webinar to discuss option spread trading on the newly available CityTrader futures and options trading platform.

Many brokerage firms outright forbid the practice; others allow it, but there are often strings attached. Trading commodities is a game of mental stability; without the proper understanding of the futures and options markets and the ability to remain calm, it is difficult to make rational trading decisions. We are a part of the minority commodity brokers that believe our clients should be given the opportunity to sell options without hassle. DeCarley Trading newsletters, you can register here. Yet, almost all of them fail to take the necessary steps to ensure their trading environment is conducive for the profits they seek. Order from Amazon today! Higher Probability Commodity Trading Top Rated Options Trading Book!

In this video, experienced futures and options broker, Carley Garner, outlines the advantages and disadvantages of option selling and highlights the various futures options premium collection strategies, setting up a proper brokerage arrangement, and offers tips and tricks to better the odds of a short option method. First Book on Commodities is everything you need to know and do before you ever place a trade. Accordingly, such brokers give their clients the freedom to implement a short option method. Join experienced futures broker, Carley Garner, to discuss the advantages and features of utilizing CityTrader via DeCarley Trading. Commodity futures offer traders a liquid arena for efficient and pure price speculation without administrative costs, rebalancing expenses, and other inefficiencies found in commodity ETFs. Some of the topics discussed were the advantages of trading futures and options on futures vs. The writer has unlimited risk and a limited profit potential, which is the premium of the option minus commissions. These are risky markets and only risk capital should be used.

Our highest profit would be attained at 135 based on options on futures expiration. We can either assist your option writing style or recommend trades and strategies we believe are appropriate, using the above guidelines. If coffee is trading at 84, we can buy 1 coffee 100 call and write 2 135 calls with the same expiration dates and 30 days of time until expiration. Risk lies if cocoa continues to decline because you only collect a certain amount of premium and the futures contract has unlimited risk the lower it goes. The writer believes the futures contract will not reach a certain strike price by the expiration date of the option. We believe you should stay with the major trend when writing futures options, with rare exceptions. Most futures options expire worthless and out of the money. This method also lowers your margin on the trade and should cocoa continue lower to 800, you at least collect some premium on the option you wrote.

Therefore, you must analyze and study each market situation with several different trading scenarios and determine which one best suits your risk parameters. The advantage is time decay. Remember, the key is still going to be picking the general market direction correct. Past results are not necessarily indicative of future results. Note: Some futures options trade based on different futures contract months and should always be considered in your trading. If you are an inexperienced options trader use these strategies through the broker assisted program. Example: If coffee was trading at 84 and we thought prices might be heading slowly higher.

We can write 1 130 coffee call with less time and buy 1 coffee 130 call with more time in the anticipation that the market will trend higher, but not above the 130 strike before the first options on futures expiration. Their sole objective is to collect the premium paid by the option buyer. For example: someone who goes long cocoa at 850 can write a 900 strike price call option with about one month of time until option expiration. This allows you to collect the premium of the call option if cocoa settles below 900, based on option expiration. Option writing can also be used for hedging purposes and reducing risk. This is known as naked option selling. There are three ways to win as an option writer. Historic volatility, technical analysis, the trend and all other significant factors should all be analyzed to increase your probability of profit. Some additional risk here lies in the difference between the two contract months.

To hedge against a futures position. This is why we recommend exiting positions once a market trades through an area you perceived as strong support or resistance. Your Trading Blood Type? Please do not hesitate to call for help with any of these strategies or explanations. Risk lies if coffee rises dramatically or settles over 152. The art of trading these strategies is deciding when, where, which futures markets, and what ranges to use. An option writer has the exact opposite to profit as the option buyer.

It also allows you to make a profit on the actual futures contract between 851 and 900. So why would anyone want to write an option? Ratio and calendar spreads are also used and are recommended at times. Most futures options expire worthless and out of the money, therefore most people lose when buying options on futures. Therefore, the option writer is collecting the premium the option buyer paid. Remember not to get caught up with only volatility, because options on futures with high volatility could always get higher. Cannon Trading Company Inc. Have you ever wondered who sells the futures options that most people buy? This would be in anticipation of coffee trending higher, but not above 135 in 30 days.

When writing naked futures options your risk is unlimited, without the use of stops. Use market pullbacks to support or resistance as opportunities to enter with the trend, by writing futures options which best fit into your objectives. We also believe in using stops based on futures settlements, not based on the value of the option. That means you need money available above and beyond any positions you hold. When companies cut costs for one service they often make up the difference elsewhere, typically by charging platform and data fees. In other words: You can do a lot of research, feel confident in your prediction and still lose a lot of money very quickly. Lightspeed customers also have free access to its Livevol X and WebTrader platforms where Level 1 quotes are free. But the last two stand apart.

Futures trading can become costly quickly. In the sections below, we highlight the standout firms in various categories. But futures contracts are often bought and sold within the same day, and some brokers offer a reduced margin requirement for day trades; generally a percentage of the initial margin requirement. Lightspeed Trading stand out by offering reasonably priced service all around. Sunday afternoon through Friday evening. Both brokers have tiered commission schedules based on monthly volume.

Futures trading is complicated business, even for experienced investors, and so is shopping for a brokerage firm to use for futures and commodities trading. TradeStation and Generic Trade do a good job of serving two different types of futures traders. MVP of the bunch, but both Generic Trade and TradeStation come pretty close. That sounds like a good thing, and it is. The only brokers that qualified for our best futures trading platform category were those offering advanced research, analytics, charting and screening tools, lots of technical indicators and free access to studies, a variety of streaming news and research as well as automated futures trades. QST offers an advanced trading platform for both individual investors and brokers. QST gives you the ability to trade from almost all windows including charts.

Sierra Chart is a professional Trading platform for the financial markets. CQG Integrated Client has earned a solid reputation through decades of reliable performance, providing traders with an innovative trading interface complete with accurate global market data, professional analytical tools, and advanced order routing. Whether you need day trading software or you invest for longer periods, MultiCharts has features that may help achieve your trading goals. Designed by a former CTA, Wave59 is a powerful, advanced trading platform that delivers a competitive edge. MarketDelta is the inventor of the Footprint chart. Supporting Manual, Automated and Simulated Trading. Which broker do you think has the best futures options interface? We do not relegate your account to a trading desk.

Weekly Newsletter and Top Trading Opportunities. The closer to the underlying market, the more expensive the option. It is of utmost importance to remember that when buying an option, time becomes your worst enemy. Commodities however, can also be traded speculating on the future price of a particular commodity going up or going down, and personally profiting based on the correct determination. If a purchased option is not closed out, the option itself, being a time sensitive instrument, will eventually expire worthless at a predetermined date, called the expiration date. Trade Futures, Options and Option Spreads all on the same platform.

Although a trader would generally stand to make more money on a correctly chosen futures contract, the limited risk of option trading in our estimation outweighs the benefits of an outright position in the futures market. Conversely, if you are looking for the price of a particular commodity to go down, you would purchase a put option. Index, the Dow Jones Industrial Average, or maybe the NASDAQ, to get an idea how your company administered 401K plan fared for the day. Trading futures theoretically leaves a trader open to unlimited risk along with ongoing margin requirements. Conversely, if the market is making small prices swings, the option tends to be less expensive. Directed, and Deep Discount Online accounts. If the market is making fairly large price swings, the option tends to be more expensive. In the above narrative, these are all physical or spot based transactions. The stated price that the buyer of a call option has the right to purchase a specified futures contract, or the stated price that the buyer of a put option has the right to sell a specified futures contract.

Options are initially purchased, and then at some point during the trade closed out, or liquidated. Create your own spread charts using the Firetip platform. There is a depreciation curve associated with remaining time value on options that can increase rather dramatically as option expiration day grows nearer. If you believe the price of a particular commodity is going up, you would purchase a call option. On a cold day you might prepare yourself a hot steaming bowl of oats, or otherwise a hearty bowl of corn flakes. Underlying market volatility is the daily trade range of the market.

You then wash it all down with an ice cold glass of orange juice. You then fire up the skillet with a couple pieces of bacon, and put a couple pieces of whole wheat bread in the toaster, that you may decide to top off with some butter. Lights out, day over. Also, unlike futures contracts, options do not allow the effective use of a trailing or protective stop, therefore you need to have an objective with your trade. Trading platforms for every level of online trader with a number of different trade platforms to choose from. Your profit or loss of money on an option trade is the difference between what you paid for the option, and the price for which it was eventually closed out, or liquidated. This is where the speculative aspect of commodity, or futures trading comes into play. Remaining time value is the number of days left on an option until expiration day. Unlike futures positions, as an option trade becomes profitable, the yet unrealized profits are locked into the option and not available until the option is closed out, or liquidated.

Rithmic, CQG, T4, Certigo, and TT. Call up; Put down. Here are some aspects of option selling that should be considered before employing a premium collection method. Futures brokers with heavy handed risk managers can wreak havoc on an option selling account. Either scenario could be psychologically and financially devastating to an option selling method. There is substantial risk of loss of money in trading futures and options. Such an event can be a costly and frustrating experience; but it can also be avoided by ensuring your commodity option broker is willing and capable of servicing your account type. However, completely disregarding commodity market volatility when implementing a short option method could lead to painfully large losses regardless of whether the futures price ever touches the strike price of the short option. My commodity brokerage service, DeCarley Trading, specializes in handling option selling accounts. For instance, some of the best option selling opportunities occur following massive price spikes in a particular direction.

During times of excessive commodity market volatility, many traders turn to the limited risk of option buying. As opposed to simple premium collection without a purpose, such as carelessly selling calls and hoping nothing happens, I feel like the best odds of success is to patiently wait for market panic or excitement of the masses and to play the other side of the trade. Some might look at the funds not being used toward margin as a missed opportunity, or a waste of risk capital. Before choosing to implement an option selling method in the futures markets, you must first honestly assess your ability to accept the prospects of unlimited risk and margin calls. Unfortunately, many beginning option sellers overlook the impact their choice of commodity broker has on the bottom line of a trading account. Also, in a more volatile market environment, commodity traders often believe it is more likely that a long option method will have an opportunity to pay off. Nevertheless, in all of the excitement traders often behave emotionally rather than logically; as a result, they exuberantly bid up the prices of low probability options to shocking levels. Sell Options Against the Trend? There is unlimited risk in option selling!

Not everyone is capable of managing the emotions that come with these two characteristics of the method; and even those who are, will have moments of weakness. Undercapitalized commodity option sellers will almost undoubtedly get into trouble. Even worse, they assume the only affect their option broker will have on their trading results is the per contract commission charge. Without plenty of excess margin in a commodity trading account, it can be difficult to survive the normal ebb and flow of the futures markets. However, nothing could be further from the truth. Most traders are buying options, and or employing futures trading strategies; a much smaller percentage of traders are selling commodity options.

If the situation is dire enough, the liquidation might be at the hand of your commodity broker; which is an unpleasant experience for all parties. This has a tendency to artificially inflate commodity option prices, due to the increase in demand for the securities. If you were a store owner, you would prefer to sell hot products at high prices, as opposed to items on the discount rack. Whether trading futures or options, a common mistake commodity traders make is to blindly follow the lead of random trading books, business news stations, popular financial newspapers, and magazines. If what you believe to be the exhaustion of a trend, turns out to be the early stages of a much larger move the trade could be in danger of substantial losses. Garner is the Senior Strategist for DeCarley Trading, a division of Zaner, where she also works as a broker. Regardless of whether a commodity option trader is placing orders online though a futures trading platform, or by phone or email with a broker, the choice of a brokerage firm will eventually play a big part in the success or failure of a commodity option trading method. Are you an option selling candidate? Imagine your option broker liquidating your trades at a highly inopportune time, before a margin call is triggered, and without notifying you.

The ugly truth is most commodity traders lose money. Failure to keep trading emotions in check could mean letting losers get out of hand, or panicked liquidation at unfortunate prices. In some of the higher margined markets such as gold, it would likely be in your best interest to have much more. Nevertheless, there are some compelling arguments to suggest that option sellers face favorable odds of success over option buyers, or outright futures traders. Of course, the trick is to be patient enough to improve the probability of your entry being at the peak of volatility; this is easier said than done. As a seasoned commodity option broker, I can attest the markets are capable of making a grown man cry. Short option traders must be properly funded to be capable of riding out any storm that might materialize. Option selling is no different.

The commodity options broker you choose DOES matter! Short option trading in the commodity markets is sometimes touted as an not difficult money method, but the truth is there is no such thing as not difficult money in the commodity markets. Another way to determine the appropriate account and position size is excess margin. After all, times of directional volatility and emotion often involve excessive option premium and this makes it a great time to be an options on futures seller. Soft Commodities: Coffee futures broker, Cotton futures, Sugar futures, Orange Juice futures. We are discount Futures Brokers, Commodities Broker and Commodity Brokers providing WebOE, an online futures trading platform that allows the future trader or discount futures trading broker access to the futures market at discount online futures trading rates, online commodity options trading and online commodity trading. WebOE offers access to commodity prices, futures charts, commodity charts, futures prices and commodity prices.

CTA and presently an IB. Commodity Trading, Futures Trading at Cleartrade. ClearTrade Commodities strives to be the best commodity brokerage firm. To learn more about how ClearTrade Commodities develops a futures trading plan with futures recommendations, commodity tips and commodity recommendations using a futures trading method. CME says it plans to launch bitcoin futures by the end of the year, pending regulatory review. Do most Futures Traders and Commodity Traders Have a Trading Plan? When you are ready to try your hand at placing trade orders, simply register for access to CME free simulationfutures trading platform. NASDAQ emini futures, t bond futures, t note futures. Learn to trade and how to invest in commodities like the pros by trading on a professional futures trading platform, in a simulated futures trading environment. Is Your Commodity Broker, Futures Broker Proactive?

WebOE includes access to commodity prices, futures prices and charts. Cleartrade Commodities brokerage firm offers a sophisticated online futures trading platform that gives traders access to trade futures in every major commodity market worldwide. Free Commodity Prices: Free Futures prices, Commodities charts, Free Commodity charts, Commodities prices. ClearTrade apart from other commodity brokers and futures brokers. ClearTrade broker will be happy assisting you and will help teach traders how to use our online platform including our commodity quotes, futures prices and future charts. Gold futures, Crude Oil Futures, Euro Futures trading, commodity futures option trading. This comprehensive commodity and futures newsletter is delivered to you each Sunday via email.

So what is commodity trading all about? Currencyfutures: Euro Forex currency futures, Japanese yen futures, Canadian dollar prices. Livestock: Meat futures, Lean hog commodity futures, Live Cattle commodities, Feeder Cattle commodity prices. Energies: trade Crude oil futures, Oil futures, Heating Oil futures, RBOB Gasoline, Natural Gas futures. WebOE offers you the best choice of futures trading platforms at the best futures commission rate. No most futures traders wing it. We offer a variety of electronic online platforms, and many other services which are available at discount futures commission rates.

The platform also gives top professional traders multiple charting in real time to add to your trading. Most professional traders need a firm with top trading software and excellent support, Insignia Futures and Options has both! It is as simple as point and click. Gold, Crude Oil, Soybeans, Euro Currency, Sugar, Live Cattle, US Treasury Bonds, plus many more. Contact us today to learn more about our commodity futures broker services. The Chicago Board of Trade for over ten years and a Hedge Fund Trader for seven years. Here is an excellent excel based SPAN margin calculator by Dudetooth.

Read from there on back to see my research on it. Prior day volume and OI are available on the CME daily bulletins. Here is an excellent, excellent website for an economic calendar. Also certain commodities have more volume than others. Admittedly, the volume on options is not that great. You just have to keep trying. Summary is that she sells stock index options in the SPX at 56 DTE.

Are there only certain times one can buy or short options on futures? Number one, compare margin requirements between brokers and the exchange minimum. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. The truth is: trading is hard. Or should I just stick to TA. Never, ever place a market order on options on commodities. No hype, gimmicks, or secret sauce. ET and reopen at 6pm ET. It varies by commodity.

Here are great charts showing world planting and harvesting of all crops by month from USDA. Number two, a big one. When I put a position on I have 5 times the Initial Margin required for cash excess. Check to see whether TOS is sending the orders to the pit or electronically. Recommend futures, options Broker? At futures io, our focus is on quality education. That will severely cut ROI.

Heating Oil, Cocoa, and Cotton are on the low side of volume. ICE Futures US Options, then pick product. We work extremely hard to keep things positive in our community. Obviously corn, oil and gold have a lot of volume. But there is pit trading still for all options. TA is used very little for option selling.

While copper has zero option volume. Read the Dow Jones news on OX to get a feel for current thoughts on commodities, check Hightower occasionally. Word doc by Iridium. This page is where you can sign up to receive emails about the margin change notices for the CME, CBOT, NYMEX and COMEX. Certain strike prices have more volume than others. But it did get a second edition printing.

But that is probably good enough for most option trading. But the book is a nice read. You do not want that to happen. Check the open interest of the strikes to see where the trading is happening. Just let us know what you need. Medium volume for options is Sugar, Coffee, Silver, Soybeans, Wheat, Nat Gas. Usually the round numbers. Most options have moved to electronic trading. Options are traded certain times of the day.

You can sign up for ICE margin change notices to be emailed to you here. The holy grail is within you, we can help you find it. Huge unnecessary losses could result. Help yourself by helping others. But there is very little trading volume during night time in the US. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Here is a website for some of the agricultural reports. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members. CLICK HERE to open account online within minutes! IB also has low commission rates and direct access trading for instant order execution meaning better price fills than most other online discount brokers. VERY profitable for me over the years.

Trading during extended market hours with my special SpikeAlerts Signals provides an endless stream of winning trades and the day to day market direction bias. SpikeAlerts with stock indexes, commodities, and currencies using CFDS. And you can open an account and fund it with your credit card be trading same day! IB is huge and their trading platform can tie into all major trading and charting platforms for flawless integrated trading. CLICK HERE to open account online and fund it with your credit card in minutes! You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. CFE has not investigated the background or disciplinary history of any of the firms listed or of any individual broker in connection with providing this list. CFE security futures contracts may be held in either a futures account or a securities account. The selection of an FCM, broker, or clearing firm involves matters of personal preference.

In choosing a firm, an investor should ask questions and take into account such factors as the investor individually regards as important. INTL FC Stone Financial Inc. CFE futures contracts, we have assembled the following list of FCMs, IBs, and clearing firms offering CFE futures products. No statement within the website should be construed as a recommendation to buy or sell a futures product or to provide investment advice. OptionsHouse LLC: OptionsHouse offers multiple types of accounts for individuals and joint account holders: individual, corporate, Roth IRAs, SEP IRAs, traditional IRAs, joint, UTMA, UGMA, trusts, partnerships, investment clubs, LLCs, and educational IRAs. Interactive Brokers LLC: With a global presence, Interactive Brokers offers two different commission structures: fixed and tiered. The same fee applies to spreads, straddles, and combos trading.

The details provided are sourced from the official brokerage sites, available at the time of writing, and may change in the future. Options trading is a complex activity with profits ranging from wafer thin to windfall. OptionTrader, available through desktop and mobile applications. It does not charge a fee for trading platform or maintenance. Disclaimer: At the time of writing this article, the author does not hold any brokerage accounts with any of the mentioned brokerage firms. Active Trader and Standard accounts respectively. Brokerage firms and their account offerings play an important role in option trading business and should be carefully selected to meet your needs.

There is no account maintenance fee. Now part of TD Ameritrade, Inc. Schwab also offers regular webinars and commentary. Currently, OptionsHouse does not require a minimum funding level to open a new account, but funding is required to start trading. TRADE, Questrade, SpeedTrader, Fidelity, and Scottrade. Options trading offers great profit potential, but it also involves a high level of risk and high brokerage fees.

Here is a list of popular option brokerage firms with a brief mention of available features, functionality, and commissions. TradeKing: TradeKing offers options scanners for selecting option contracts per individual trading style, dynamically updating options chains, probability calculators, and a profit and loss of money calculator, along with streaming data and a trade platform called TradeKing Live. Likewise, rebates passed on to clients by IB may be less than the rebates IB receives from the relevant market. Tiered commission schedule may be greater than the costs paid by IB to the relevant exchange, regulator, clearinghouse or third party. For example, IB may receive volume discounts that are not passed on to clients. Services vary by firm. Report, Customer Service, Education and Security, and Costs.

This Chicago based company has an innovative platform allowing you to trade with confidence. Sign up is free and only takes minutes. Ultimately, depending on the trader, the broker characteristic that matters to one trader may matter more or less to another. One strike against Stage 5 Trading is that their actual commissions are not listed on the website; traders must call in order to receive a quote. As for tech offerings, Interactive Brokers features programmable hot keys and customizable order types; watch lists can have up to 338 columns and are truly customizable. Traders may want to check out Stage 5 for more than just a few reasons, and a quick Google search can show you why. Remember, not every painter prefers the same paintbrush, and the same goes for individual traders.

Interactive Brokers made our list for best brokerage for online stock trading. ECNs and exchanges, and traders are also allowed a free practice account. First of all, TradeStation offers two pricing schedules. TradeStation offers advanced order types and paper trading features on the desktop as well as a mobile app which offers charting and advanced order types, as well as paper trading features. One strike against TD Ameritrade is that its high commissions are not ideal for traders searching for a bargain. NinjaTrader won the 2016 True Edge Futures Broker of the Year Gold Award and has the only platform powerful enough to run the Diversified Trading System.

Futures traders can get the lowest NinjaTrader commissions by acquiring a platform lifetime license. Everything must tick along as smoothly as a Rolex Cellini tracks the seconds in a day. Stage 5 Trading offers competitive commissions and no software fees or minimum transaction fees, in addition to flexible intraday margins. Perhaps one thing that raises the most red flags are those pesky commissions and margin fees. TD Ameritrade worth checking into. In addition, NinjaTrader offers extensive data feed options, flexible interface and free demonstration options. TradeStation offers over 80 futures products and offers a comprehensive desktop platform where stocks, options and futures can be traded together. They offer a fully configurable trading platform for knowledgeable traders with more than 50 order types.

All devices, including iPhone, iPad, Apple Watch and Android smartphone and tablets are supported. TradeStation Technologies has all of the necessary tools to trade futures successfully.