QUOTE(peinsama @ Aug 3 2009, 02:18 PM)
To be honest, i'd yet to see or heard any people doing such strategy, but in books or theories, its advisable to do so.
If im not mistaken, if the underlying index is bullish which could imply that the acquisition would be more expensive for purchase, futures is used to cover the extra cost. I'm still questioning and wondering, whether this strategy is consider a hedging.
True, from my observation this far, many actually prefer to keep their long position rather than completing a trade. Just like last month contract, there are clients hold their long position since 103- level or more and closed their transaction with the settlement price at the end of the month of July, which is of course more than 100 ticks of profit.
I see. No worries, you got ample of time to decide to play futures.
Thanks for your advice.
Well, I just thinking if a new trader like me running in and out all the times ( future ) , the chances of getting caught are very high.
Why not I just buy on dip and keep the future contract for a longer duration since we are yet to call the market , bull run.
Take profit only when it is necessary, without having to predict whether the market would be up or down the next day.
I try to do it , my own way, no theory book to support.