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Old 01-17-09, 09:48 AM
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Airelon Airelon is offline
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When you say "Stock Futures" - I'm assuming you mean things like the e-mini S&P 500 contract? I've traded futures for some time (All types, Futures Options, and Futures Contracts on Oil, Corn, Wheat, e-mini S&P 500, Gold, etc). I think with optionsXpress, you can open it up with the account that small, but they will not let you trade margin with it.

But please know, that it is possible to start out with a small balance, and low-funded. Heck, I'm proving that with my "Airelon's Challenge Project". But starting out low funded, and trading on margin are two totally different things.

So take optionsXpress. You can start funding your account. But what does trading on margin really mean? Let's say they let you 'trade' the e-mini S&P 500 with a $6,000 margin requirement. That means you are putting down $6,000 for a contract that may be worth over $42,000. And you are telling the brokerage that you are good for that entire $42,000 if something goes wrong. That's key. You can lose much more than your original margin requirement. That's why you should avoid anyone that promises you 'low margin requirements' like the plague. Because in effect, the brokerage is overleveraging themselves by requiring too little.

I tell folks to start funding an account. If you like a platform, like, say "Think or Swim", and you don't have enough to open the account? (and I remember what it's like to be in that position, which is why I try to assist the low-funded beginner) - then stick it in an ING Savings account. You're getting a return of 2.75% APY, and then when you have enough, you can start trading it.

Hope this helps ...
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