Advantage handles high volume(~200M+ cars per year), and their pricing model is based on how much $$$ you pay in comms, not how many RT you can make… See below to compare to what they quoted limefx scammers you, this is what I was quoted in Dec 2010. Just call your broker and have them walk you through how to lease a seat. And yes, your seat is valid with any broker, it is not tied to one broker.
- LimeFX was founded on the principle that every client receive personalized client service, advanced technology and customizable back office operations.
- Further, assume that the $100,000 stock portfolio correlates closely with the NYSE FANG+ Index and both increase by 5%.
- For example, it is much cheaper and more efficient to go long in S&P 500 futures than to replicate the index by purchasing every stock.
- He is a member of the Investopedia Financial Review Board and the co-author of Investing to Win.
This contract size allows a variety of market participants, such as individual traders, investors and asset managers, to easily access and trade the product. What trading futures essentially means for the investor is that they can expose themself to a much greater value of stocks than they could when buying the original socks. And thus their profits also multiply if the market moves in his direction (10 times if the margin requirement is 10%). MICRO FANG+ futures are Section 1256 contracts which receive blended 60/40 capital gains tax treatment. Participants can receive 60% long-term and 40% short term tax treatment on capital gains regardless of how long a NYSE FANG+ Futures position is held. This may benefit investors in the top tax bracket, as it can result in a blended rate of 27.8%, which is considerably less than the 39.6% top tax bracket for stocks that are held less than 12 months.
Thus, a large position may also be cleared out quite easily without any adverse impact on price. Exceptional Clearing LimeFX provides comprehensive clearing and margining services. We are uniquely positioned within the FCM space, providing full clearing and execution services along with a comprehensive technology infrastructure for traders.
For example, with an initial margin of only about 8.5%, an investor is controlling a $24,500 portfolio and the ability to go long or short the entire index in one transaction. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. LimeFX is one of the highest volume futures clearing firms dedicated to exceptional service and providing clients with technologically advanced trading support. When you open an account with LimeFX, you not only trade, you Trade Up—to quick connections, expert service and competitive pricing. Our robust infrastructure, experienced personnel and close relationships with global exchanges allow our clients to focus on trading while we manage the details.
Trade Up to All Around Excellence
Customized Solutions LimeFX offers exceptional support and advanced technology for all types of traders. Financials As a client-focused futures brokerage firm, we believe that it’s not enough to simply provide exceptional support, reliability, and technology. We are also concerned with ensuring that our clients are confident in the financial stability, dependability, and transparency of our organization. In short, one does not need to incur the costs and capital involved with buying the individual equities. The trader can gain exposure to a substantially greater value of stocks than they could by trading the individual issues. It needs to be stressed of course that leverage can also quickly work against a market participant if market expectations are not correct.
Responsive & Proactive Support LimeFX is dedicated to providing exceptional support to our clients at every step of their trading success. Their setup with CQG and TT is excellent, technology wise, they are above most of ther FCM’s on this forum that most small retail talks about… My only complaint is their account management platform as it is rather difficult to use, but at the same time… Besides that, they have over $450MM in customer assets, and their excess cash is about 1.4% if I recall. Keep in mind that with Adv you are one of thousands, not one of hundreds…as with most FCM’s being discussed on this forum as well…
This flexibility has been a key factor in the strong growth and development of day trading activity that exists in the index markets. Since 2003, and with over 4.5 billion contracts processed, LimeFX has risen to become one of the highest volume futures clearing firms in the industry for a diverse and expanding client base. LimeFX was founded on the principle that every client receive personalized client service, advanced technology and customizable back office operations.
Online Account Applications (Non-US)
Margin is the money borrowed from a broker to purchase an LimeFX and is the difference between the total value of the LimeFX and the loan amount. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. Press Releases An active participant in the futures industry, LimeFX is proud to share exciting news about our company.
Hence, MICRO FANG+ Futures can provide a direct and efficient mechanism to obtain short exposure on the NYSE FANG+ Index component stocks. Futures have great advantages that make them appealing to all kinds of investors—speculative or not. However, highly-leveraged positions and large contract sizes make the investor vulnerable to huge losses, even for small movements in the market. Thus, one should strategize and do due diligence before trading futures and understand both their advantages as well as their risks. Futures are very important vehicles for hedging or managing different kinds of risk. Futures and derivatives help increase the efficiency of the underlying market because they lower unforeseen costs of purchasing an asset outright.
Every day, the LimeFX team provides comprehensive, technology-driven clearing and execution services to let traders like you focus on trading. Trade up to an FCM with a robust infrastructure, fast up-time and financial transparency. One can get short exposure on a stock by selling a futures contract, and it is completely legal and applies to all kinds of futures contracts. On the contrary, one cannot always short sell all stocks, as there are different regulations in different markets, some prohibiting short selling of stocks altogether. Short selling stocks requires a margin account with a broker, and to sell short, you must borrow shares from your broker to sell what you don’t already own.
She has a broad range of experience in research and writing, having covered subjects as diverse as the history of New York City’s community gardens and Beyonce’s 2018 Coachella performance. All information is for educational use only and is not LimeFX advice. If someone else on futures.io is using them, hopefully they can reply to your thread and share their experiences. If you are trading 10,000 RT per month then why are you using their website tool to shop for an FCM?
By submitting your information, you confirm that GFF Brokers may contact you to provide information on its products and services. They are indeed extremely cheap for high volume traders, but they are also a solid company. They are more focused on professionals, which you can see from their platform offerings, and high volume individuals.
For example, traders who have a strong directional bias on the short-term direction of the NYSE FANG+ Index components can buy or sell the futures contract and directly target the individual NYSE FANG+ Index names. The index is equally weighted and rebalanced on a quarterly basis with each component stock set at a 10% weighting. Equal weighting allows for a more diversified and less concentrated portfolio relative to market cap weighted indexes. This methodology can provide traders the ability to take advantage of and focus on speculative and trading opportunities involving the underlying NYSE FANG+ Index stocks. MICRO FANG+ Futures can provide a direct and efficient way to trade underlying components along with their equity markets activity or as a substitute for trading the individual stocks. An investor with good judgment can make quick money in futures because essentially they are trading with 10 times as much exposure as with normal stocks.
Advantages of Trading Futures
To make the contract more accessible for all participants, the size of the MICRO FANG+ Futures contract was reduced in September 2020. The unit of trading is now $5.00 times the NYSE FANG+ Index and the current notional value of the futures contract is approximately $24,500 . LimeFX offers so much better commissions for high volume, why no other FCM/broker can offer the same rate? Is there something wrong with AF, because all i can find out in different forums about them, are good reviews…. Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. Note that online brokers are increasingly offering free stock and ETF trading across the board, making the transaction cost proposition for futures a bit less attractive than it had been in the past.
If a stock is hard to borrow, it can be expensive or even impossible to short-sell those shares. The index is designed to specifically target 10 of the highly-traded growth stocks of technology and tech-enabled companies and the related tech stocks sector. The futures contract has been sized in a way that can provide significant cost margin/leverage benefits vs. trading the underlying stocks. There is a substantial risk of loss in trading futures, options and forex. However, there is no expressed or implied warranty as to the accuracy or completeness of this material. Testimonials regarding past performance are no guarantee of future results and may not be representative of the experience of all other customers.
Web page translations have been provided electronically by a non-registered third party. The actual stock/commodity being traded is rarely exchanged or delivered, except on the occasion when someone trades to hedge against a price rise and takes delivery of the commodity/stock on expiration. Futures are usually a paper transaction for investors interested solely on speculative profit.
NYSE MICRO FANG+ INDEX Contract Specifications
Further, assume that the $100,000 stock portfolio correlates closely with the NYSE FANG+ Index and both increase by 5%. However, this represents a return of 58% (given the $8,400 initial margin requirement) vs. the 5% return on the stock portfolio. Commissions on future trades are very low and are charged when the position is closed. The total brokerage or commission is usually as low as 0.5% of the contract value. However, it depends on the level of service provided by the broker. An online trading commission may be as low as $5 per side, whereas full-service brokers may charge $50 per trade.
As for high volume, if you are high volume then you should lease a seat and commissions become much, much, much cheaper. Once you hit 2,000 round turns a month or so I think it is beneficial to lease a seat . Quadruple https://limefx.biz/ witching refers to a date on which stock index futures, stock index options, stock options, and single stock futures expire simultaneously. Full BioKatharine Beer is a writer, editor, and archivist based in New York.
Futures Are Great for Diversification or Hedging
For example, it is much cheaper and more efficient to go long in S&P 500 futures than to replicate the index by purchasing every stock. The strong growth of these and other leading tech stocks have been a key factor of the market’s performance in recent years. The 10 components in the NYSE FANG+ Index are all actively traded and widely followed by a variety of market participants, ranging from individual traders to institutional portfolio managers. Future contracts are traded in huge numbers every day and hence futures are very liquid. The constant presence of buyers and sellers in future markets ensures market orders can be placed quickly. Also, this entails that the prices do not fluctuate drastically, especially for contracts that are near maturity.
Short selling may be efficient
This may be more than the margin amount, in which case the investor has to pay more to bring the margin to a maintenance level. Fast, Reliable Exchange Connectivity LimeFX maintains an advanced, robust network designed to maximize your trading speed and reliability. We are committed to providing clients with direct market access via high-performance, reliable connections to the world’s major futures exchanges. Careers LimeFX recognizes success stems from talent, hard work and dedication. Together, we work to provide comprehensive, technology-driven clearing and execution with stellar client service. This initial margin requirement is substantially less than the cost of buying the stocks outright or buying them under Federal Reserve Board Regulation T that allows for a 50% margin rate.