Futures options usually expire near the end of the month that precedes the delivery month of the underlying futures contract i.
March option expires in February. Each futures option contract also has the same contract value as the underlying future, which represents the amount of the commodity to be traded. In order to trade any futures contract, traders are required to put up a good faith deposit called margin, which sets aside money in your account in the event of losses.
Day traders who do not hold their position overnight get a reduced margin rate of Futures options are traded in contracts, and each futures option contract represents 1 contract of the underlying commodity. There can be multiple weekly and monthly futures option contract series that all relate or deliver into the same unique underlying futures contract. The price or premium of a futures option contract is determined by a number of pricing factors that include:.
The price quoted for a futures option is the per-contract price of the option. Learning which futures option to buy or sell and when to buy or sell, when to hold your position and when to close your position requires knowledge and experience you can gain through education and coaching. Market BasicsFutures OptionsFutures options combines the benefits of both trading futures and trading options and offers a number of advantages over other financial instruments.
Limited Risk — Buying a call or put futures option offers the trader Market BasicsFutures OptionsTrading futures options requires you learn how to trade futures, how to trade options and how to trade futures options. You need a detailed understanding of each futures option contract you are going to trade, learn what TradeStation does not directly provide extensive investment education services.
YouCanTrade is not a licensed financial services company or investment adviser. Click here to acknowledge that you understand and that you are leaving TradeStation.
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You are leaving TradeStation Securities, Inc. TradeStation Securities, Inc. TradeStation Crypto, Inc. TradeStation Technologies, Inc. You Can Trade, Inc. You Can Trade is not an investment, trading or financial adviser or pool, broker-dealer, futures commission merchant, investment research company, digital asset or cryptocurrency exchange or broker, or any other kind of financial or money services company, and does not give any investment, trading or financial advice, or research analyses or recommendations, or make any judgments, hold any opinions, or make any other recommendations, about whether you should purchase, sell, own or hold any security, futures contract or other derivative, or digital asset or digital asset derivative, or any class, category or sector of any of the foregoing, or whether you should make any allocation of your invested capital between or among any of the foregoing.
TradeStation Crypto accepts only cryptocurrency deposits, and no cash fiat currency deposits, for account funding. In order for you to purchase cryptocurrencies using cash, or sell your cryptocurrencies for cash, in a TradeStation Crypto account, you must also have qualified for, and opened, a TradeStation Equities account with TradeStation Securities so that your cryptocurrency purchases may be paid for with cash withdrawals from, and your cryptocurrency cash sale proceeds may be deposited in, your TradeStation Securities Equities account.
This cash in your TradeStation Securities Equities account may also, of course, be used for your equities and options trading with TradeStation Securities. TradeStation and YouCanTrade account services, subscriptions and products are designed for speculative or active investors and traders, or those who are interested in becoming one. Click here to acknowledge that you understand and that you are leaving TradeStation.
You are leaving TradeStation Securities, Inc. TradeStation Securities, Inc. TradeStation Crypto, Inc. TradeStation Technologies, Inc. You Can Trade, Inc. You Can Trade is not an investment, trading or financial adviser or pool, broker-dealer, futures commission merchant, investment research company, digital asset or cryptocurrency exchange or broker, or any other kind of financial or money services company, and does not give any investment, trading or financial advice, or research analyses or recommendations, or make any judgments, hold any opinions, or make any other recommendations, about whether you should purchase, sell, own or hold any security, futures contract or other derivative, or digital asset or digital asset derivative, or any class, category or sector of any of the foregoing, or whether you should make any allocation of your invested capital between or among any of the foregoing.
TradeStation Crypto accepts only cryptocurrency deposits, and no cash fiat currency deposits, for account funding. In order for you to purchase cryptocurrencies using cash, or sell your cryptocurrencies for cash, in a TradeStation Crypto account, you must also have qualified for, and opened, a TradeStation Equities account with TradeStation Securities so that your cryptocurrency purchases may be paid for with cash withdrawals from, and your cryptocurrency cash sale proceeds may be deposited in, your TradeStation Securities Equities account.
This cash in your TradeStation Securities Equities account may also, of course, be used for your equities and options trading with TradeStation Securities. TradeStation and YouCanTrade account services, subscriptions and products are designed for speculative or active investors and traders, or those who are interested in becoming one.
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No offer or solicitation to buy or sell securities, securities derivative or futures products of any kind, cryptocurrencies or other digital assets, or any type of trading or investment advice, recommendation or strategy, is made, given or in any manner endorsed by any TradeStation Group company, and the information made available on or in any TradeStation Group company website or other publication or communication is not an offer or solicitation of any kind in any jurisdiction where such TradeStation Group company or affiliate is not authorized to do business.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade equities, options, futures, futures options, or crypto ; therefore, you should not invest or risk money that you cannot afford to lose.
System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system, platform and software errors or attacks, internet traffic, outages and other factors. TradeStation Crypto offers its online platform trading services, and TradeStation Securities offers futures options online platform trading services, through unaffiliated third-party platform applications and systems licensed to TradeStation Crypto and TradeStation Securities, respectively, which are permitted to be offered by those TradeStation companies for use by their customers.
Please also read carefully the agreements, disclosures, disclaimers and assumptions of risk presented to you separately by TradeStation Securities, TradeStation Crypto, TradeStation Technologies, and You Can Trade on the TradeStation Group company site and the separate sites, portals and account or subscription application or sign-up processes of each of these TradeStation Group companies. They contain important information, rights and obligations, as well as important disclaimers and limitations of liability, and assumptions of risk, by you that will apply when you do business with these companies.
Our call-back scheduling system is currently offline while we observe today's holiday. We will resume taking call back requests at 8AM ET on the next regular business day. Automated technical analysis is built into the charting package, displaying technical patterns on the charts as they form. The web charting has been greatly enhanced and includes all streaming real-time data with the ability to add overlays and all kinds of indicators. Web charting capabilities more closely match TradeStation 10, including a new toolbar with access to adjust timeframes, drawing tools, sessions, and styles.
You can trade directly from a chart, including previewing a closing bracket order on a chart. The order ticket can be modified by dragging and dropping closing price targets onto the chart. This is one of the best charting applications available from any broker, and it is especially notable for how well it is integrated with TradeStation's order management system. The Portfolio Maestro includes analytics, optimization, and performance reporting to give traders a realistic perspective of their portfolio.
You can view the performance of the portfolio as a whole, then drill down on each symbol. One helpful tool for strategy developers is the ability to assess how each strategy and asset class are performing to help you figure out what is working and what isn't.
Futures Options Trading Platform | TradeStation
There are additional portfolio-focused apps available from the TradingApp store that include additional analysis and visual reporting. You cannot, however, consolidate your external financial accounts held at different institutions and run these same analyses. All balance, position, and margin data is presented in real-time. You can use the charting features to create a trading journal. A visual representation of each trade can appear on a chart of the financial instrument stock future, etc. TradeStation says it does not directly provide education services anymore now that it has acquired YouCanTrade.
It's Learn page directs you to investment and trading educational presentations and materials on YouCanTrade's website. In addition, "The Trend" is a daily show that goes over current market events and trading ideas. Other topics require a subscription. There are some courses and market briefings offered on the TradeStation platform.
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TradeStation's Knowledge Center appears to be undergoing a remodel. The articles are not as easy to find as they were a few months ago. As mentioned, TSbot is not yet very helpful, frequently answering, "Oops, I may not have been trained on that yet. Can you please rephrase and try once again? One incredibly valuable tool for traders looking to learn is TradeStation's trading simulator, which has all the tools you'll find on TradeStation This includes the large historical database for backtesting strategies, though the simulator itself uses delayed data.
TradeStation security is up to industry standards:. TradeStation has put a great deal of effort into making themselves more attractive to the mainstream investor, but the platform is still best suited for the active, technically-minded trader. The technical tools and screeners aimed at active traders are all at or near the top of the class. Despite this minor annoyance, the focus on technical research and quality trade executions make TradeStation a great choice for active traders. Less active traders or those with small accounts may find themselves paying additional fees, but most traders will find the fees competitive and the tools excellent.
In contrast, the tools aimed at regular investors, including the mutual fund and fixed income screeners, are a noticeable step down. TradeStation is clearly taking steps towards being more friendly to retail investors, but it has a long way to go in this regard. This isn't the place for an investor who wants to "set it and forget it" or needs educational resources to get started. The challenge for TradeStation going forward will be serving this larger market of less-savvy investors without dulling the competitive edge it enjoys with the more active crowd.
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