Maybe foolish question Backtest, Nasdaq, CFD, Futur
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This is the Search function in the main menu (click the loupe). Choose Future. Now refine your search with tickers or names.
Normally a Future is open (like Nasdaq almost 23 hours per day) while the stock it is about (what is contains the “future” about) is more limited open. Indices are representatives from stocks (certain baskets of them), and they are open at the same time as stocks.
When the markets are open, Futures and Indices of the same will always show about the same price. The both are certainly not equally volatile. For example, I never trade Indices and always trade Futures.
No stupid questions at all !!
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PS: Although you can trade Futures longer (during the day) than stocks and indices, trading Futures is almost “infinitely” more complex. If you would have questions about them, normal support usually can’t answer those questions. Traders would, though.
Futures take a long path of learning, to do them well and understand all of them (I mainly talk about the financial Futures like Nasdaq, S&P500, DAX, CAC).Most of the complexity is about their settlement times (or even dates, with holidays) and how a trading platform deals with that all, where no trading platform agrees. This, for example, is PRT and the AEX from last night, a few minutes into the trade (and 90 minutes or so after closing time), PRT showing it plain wrongly (no 11K loss, but only a few euros (USD in my case) loss. This imposes “issues” the next morning (where to put Limits etc.) and this is only one. They are almost all different with their own “issues”.
Still advisable over Indices. 🙂
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Peter, why are Futures advisable over Indices?
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I have always heard that futures have closing dates, and that you should always close your positions before the new contracts, is this still true for index’s futures ?
Z.C., Yes. The one I showed is valid till Feb 2022. It also shows its expiration date (2nd attachment). So before that time you need to be “out” of it, or else “something” determines its end price (a handful of traders still in there can manage huge swings). The expiration dates and times are different for all, can hardly be found anywhere (but PRT shows them perfectly) and the one expires each month, the other each 3 months, thus some all in the same week but the one with less “roll over” time than the other and … and this is only one aspect of them. After a year I was able to tell (my) support how it really works, which doesn’t mean that I can organize all within the time required.
Notice the (e.g.) (AEX)XXXX special versions, which have history beyond the future itself.Guessing their names for the next period (like the AEX will be AEX0322) also is a kind of “skill” until you just know how to to it. This also relates to at least 3 different “tickers”, like in this example AEX and FTI, but at the broker again something else (must start their program to see it).
Blablabla ?
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Peter, why are Futures advisable over Indices?
Hi GraHal,
Some things may be subjective, and some even wrong for the broker (IB vs IG), but Futures
- Are cheaper (commission and such);
- Come with more margin headroom;
- Predict what the stocks will do while you contribute to the prediction itself;
- Move all together in the same direction (computer systems !) except for that what you are able to see (through);
- Work at night with stocks in after market, or pre-market (mainly USA); Thus stocks still reflect the future to be;
- They represent markets (also after hours) of which you can see a nice example in the attachment.
The latter is (at least for me) interesting, because I try to follow what’s going on in the world. Below you see the USA (first 3) being the same for curve (quite similar) while the bottom one (Germany) is different, but should be equal again to the AEX (not shown) and more European Futures. In this case the German(y DAX) is not the same at all for its curve, which “predicts” something for later tonight and what I really work with. Also notice that Europe has just settled (17:30 Amsterdam time) while USA does that 4.5 hours later, DAX closing at that USA settling time and USA closing at one hour later. USA reopens again 1 hour later (00:00 my time) the DAX again 1h15 later (01:15). AEX and the others next morning 08:00. All work into each other, and throughout a day many things happen because markets open. Let’s say it brings you a lively day, each day again. And one can really earn money when keen on those matters/subjects.
One of the elements is that what you see from the DAX for today’s profit, is not correct at all because it is the profit since the last settlement, by now over 24 hours ago. So no way the DAX (representative for Europe) is doing more than 1% better than USA, but everybody including Bloomberg will tell you so.
You know what ? PRT-IB does not allow to trade the UK LFE future because nobody is interested in that, they say. They say what ?!
Not even during Brexit times ? of Jhexit times ? (made up that one on the spot).So yeah. Probably all personal.
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there’s a search box in the main tool bar.
just type in NASDAQ, or US Tech 100 CASH €1
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NASDAQ would be one. But be extremely carful, because one contract is USD 305200, OK ?
See the attachment under the mouse pointer. The Point Value (Punt Waarde) equals $20. That means that the price is to be multiplied with 20.This is the Mini version. Micro exists too. See 2nd attachment, the one with the $1 value (thus one contract is 1x the price). Ticker is the same, but it can be selected in a chart – see 3rd attachment.
Maybe others should overrule what I am saying here, because I don’t trust myself much with IG (unfamiliar ticker names). Prices don’t compare either (4th attachment, left is IB, right is IG). Opening Times are also different (full 24 h for IG).
It lists under Futures, but the description says Indice. I don’t see an expiration as well for the IG versions.Can someone else answer this better, please ?
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Correct me if I’m wrong. but anythng from IG is not a true Future at all?
A ‘Future’ contract offered by IG is based on / priced around the Futures Contract (of whatever is indicated in the IG Instrument name).
Same with CFD from IG these are all in-house IG Instruments which are not traded outside of IG.
I’m only saying in case anybody thinks … yeah I trade Futures! 🙂 Well we kinda do, but we dont!? 🙂
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Retail investors in particular are often shocked by futures trading and often switch to CFDs (Contracts for Difference), which have become increasingly popular in recent years. But also with CFDs there are advantages and disadvantages. As with futures trading, CFDs also allow you to generate high profits with a small capital investment due to leverage. However, a disadvantage is usually that the prices and spreads can be to your disadvantage. The cost of CFDs can therefore be considerably higher. You also pay interest for holding CFDs, as you receive an advance payment from the issuing party.
Often investors choose CFDs because they find the leverage of normal futures too high. In recent years, however, mini and micro futures have also been launched, so that can no longer be a reason for choosing CFDs.
CFD trading is not transparent with many brokers (like IG), because transactions do not take place via a regulated exchange. Brokers (IG) can set the prices for CFDs themselves and that can be detrimental.
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