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Q&A: future and option trading.?

Posted on September 2nd, 2010 by Administrator

Question by I own you: future and option trading.?
I have a 3 questions
1)What are the margins for doing future and option trading.
I think I do not need $ N to trade $ N future or option.

2)What is the best/largest company offer online future and option trading?

3)What is future option trading, is it different from both future and option trading?

Best answer:

Answer by zman492
<<<1) What are the margins for doing future and option trading.>>>

It varies by brokerage. All brokerages have to meet SEC minimums, but they may require more margin than the SEC requires.

For example, here are the margin requirements for one brokerage

Futures:

http://www.tradestation.com/LW_Reports/report.pdf

Stock Options and Index Options:

http://www.tradestation.com/brokerage/requirements.shtm#futures

<<>>

Correct.

<<<2) What is the best/largest company offer online future and option trading?>>>

The “best” depends on you and the way you trade. What is best for one person may not be best for another.

<<<3) What is future option trading>>>

A future option is an option where the underlying security is a future contract, so future option trading is buying and selling options on futures.

<<>>

It is one form of option trading. John might be trading options on Intel stock and Ken might be trading options on frozen OJ futures. Both would be trading options, but only Ken would be future option trading.

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