Futures vs. Options

spncr2 · #1 (**permalink**) 12-15-05, 06:59 PM

Alright everyone. I have started getting more involved with trading options, but it seems like everywhere the word "futures" pops up along with it.. I would like to learn a little about techniques on trading these and just an overall comparison between both. ANy input will help.

Thanks.

WallStGolfer31 · #2 (**permalink**) 12-16-05, 12:53 AM

Futures are practically all margin, they have only matenience to hold, and you are marked to market at the end of the day, your account will be credited or debited accordingly. Try reading "getting Started in Futures" forgot the Author, I have it at home somewhere, great book!

FirstConsul · #3 (**permalink**) 12-16-05, 04:02 AM

Futures have limit downs. So one of your stops may never have time to get executed and the market closes.
Oil, gold and etc are traded most of the time. Other futures may not be traded all day. While Light Sweet Crude is traded on the NYMEX, it is still traded globally after the NYMEX closes. Some futures like those on copper may be traded only a few hrs a day.
Forex futures are traded 24 hrs a day, 5 days a week. You can actually go long continuous contracts, but that's another story.
When you go long options, you can only lose the amount you put up, unless you write options. But with futures, you could lose your shirt and still owe money.

spncr2 · #4 (**permalink**) 12-17-05, 11:03 AM

Thanks for you posts guys. What about commisions on trading? Are they relatively close? Do they even exist at all? Also, can any broker make the transactions for you?

Thanks again.