Jan 23 2008, 09:56 PM
QUOTE(cherroy @ Jan 23 2008, 02:28 PM)
It depends on individual, if one has some good history of financial creditibility, it doesn't require much information or red tapes, just sign up the opening account application form and paid Rm10 for stamp duty then viola, next day can trade already as my case 
when I open the futures trading account.
Locally, using spread to gain is difficult because relatively low liquidity or volume, most concentrate on spot month, others forward month contract bid and ask can be too far sometimes and with low volume only. You need 2 way of trade to gain through the spread.
In US, it is much easier to do and when opportunities come one can always use arbitrage for some small and quick gain.
Eg. if a portfolio manager is holding of 100 KLCI component stocks with KLCI index at 1350, while FKLI is trading at 1310, the managers can dispose the 100 stocks then buying the equivalent amount money/value of FKLI at 1310. In this way the manager can straigh away make a profit of 40 points while its holding value still remains unchanged. That's how you do abritage trading and using the spread to make quick and automatical gain. Sadly to say, locally the non-diversified investment tools available here are not presenting this kind of opportunities.
Added on January 23, 2008, 2:31 pm
Yup, experience sometimes is the ultimate 'teacher'
Just remember to have high discipline when trading and trade until you can afford.
The highlighted in bold I would like to draw your attention to this as well, this is also a misperception many have whilst opening an account. Financial credibility is not a criteria or deciding factor whether you can trade futures, but can you staisfy the initial margin or not. when I open the futures trading account.Locally, using spread to gain is difficult because relatively low liquidity or volume, most concentrate on spot month, others forward month contract bid and ask can be too far sometimes and with low volume only. You need 2 way of trade to gain through the spread.
In US, it is much easier to do and when opportunities come one can always use arbitrage for some small and quick gain.
Eg. if a portfolio manager is holding of 100 KLCI component stocks with KLCI index at 1350, while FKLI is trading at 1310, the managers can dispose the 100 stocks then buying the equivalent amount money/value of FKLI at 1310. In this way the manager can straigh away make a profit of 40 points while its holding value still remains unchanged. That's how you do abritage trading and using the spread to make quick and automatical gain. Sadly to say, locally the non-diversified investment tools available here are not presenting this kind of opportunities.
Added on January 23, 2008, 2:31 pm
Yup, experience sometimes is the ultimate 'teacher'
Just remember to have high discipline when trading and trade until you can afford.
QUOTE(jimmyttl @ Jan 23 2008, 02:35 PM)
Then I guess I'll stick around this thread for a time before I start trading.
Adrian,
I saw it somewhere as well that HLebroking does offer the facility to trade via its web portal but this is the reply I get when I email-ed the helpdesk the other day clarifying it.
Dear Sir,
Kindly be informed that we do not have Futures trading via HLeBroking website. Should you be interested to open a separate account for Futures trading, kindly liaise with Mdm Lucy Tong.
Should you require any further assistance, please do not hesitate to call our helpdesk at 603-21681000. Alternatively, you can send us an e-mail via helpdesk@hlgs.hongleong.com.my
Not any helpful ain't it. May I assume you have a futures trading account with hlebroking? If you do, mind telling me the steps that I need to take to get 1 as well?
Your definition of spread is the difference between 2 futures with different expiry date and the spread is the cost incurred in roll-ing over from 1 older futures to a newer 1 instead of closing it? Am I right? True, guess I'm nt going to use the spread much too as it involves a very long time duration and thus higher risk.
Again cherroy and aurora97, thanks for answering my queries
Added on January 23, 2008, 2:42 pm
Could you tell me if your trading is done through the internet? I am not too comfortable talking over the phone with a remisier for some reason. If it is, mind giving me a rough idea on the procedures?
Sorry i dont know anything abt HLEbrokings futures electronic trading facilities or how you apply to open one, by the way i wish to clarify that you can only view the information i.e. flactuations in price; volume; charts; products the general stuff through such facility but not execute. Adrian,
I saw it somewhere as well that HLebroking does offer the facility to trade via its web portal but this is the reply I get when I email-ed the helpdesk the other day clarifying it.
Dear Sir,
Kindly be informed that we do not have Futures trading via HLeBroking website. Should you be interested to open a separate account for Futures trading, kindly liaise with Mdm Lucy Tong.
Should you require any further assistance, please do not hesitate to call our helpdesk at 603-21681000. Alternatively, you can send us an e-mail via helpdesk@hlgs.hongleong.com.my
Not any helpful ain't it. May I assume you have a futures trading account with hlebroking? If you do, mind telling me the steps that I need to take to get 1 as well?
Your definition of spread is the difference between 2 futures with different expiry date and the spread is the cost incurred in roll-ing over from 1 older futures to a newer 1 instead of closing it? Am I right? True, guess I'm nt going to use the spread much too as it involves a very long time duration and thus higher risk.
Again cherroy and aurora97, thanks for answering my queries
Added on January 23, 2008, 2:42 pm
Could you tell me if your trading is done through the internet? I am not too comfortable talking over the phone with a remisier for some reason. If it is, mind giving me a rough idea on the procedures?
for execution you still need to go through a broker, if your uncomfortable talking through the phone try asking the broker your talking to whether he offers your MSNmessenger/yahoo, SMS (rare but there is) etc...
The Future to Futures trading?
Yes, gentleman expect in the not so distant future there will be self execution but futures will take the lead in this field. The trial has been on going at the moment, expect in the future this method of execution will spill over to the equity market and you can say Bye bye to those incompetent remisers.
will keep everyone updated
Added on January 23, 2008, 10:14 pmAnonymous pm
" I realise that you are not in the stockbroking division but do you know a few good remisiers that you could recommend? I am somewhat new in stock investing (so I need a remisier who are patient enough to guide me) and I have RMXYZEERk to invest. "
For people who are new or have no experience of stockbroking I advise that you try and at least learn or read up books to at least gain some in-sight on how the equity market works.
Why?
I can technically recommend 10-20 remisiers without a problem...
But?
Why I don't recommend remisiers is because they earning a living from commission and if you solely rely on them for advise and guidance this is what willl happen...
Scenario 1
Commission ramming or Volume seeking remisiers, I hope there's no remisiers running around looking at this post but the truth is everyone wants to make money.
Scenario 2
Stockmarket is a very subjective matter whether its worth investing in equity or not, fundamentals and technical analysis may point to profits but the market is a wild an untamed animal.
Conclusion?
Sorry I don't recommend remisers. Better to read and learn.
This post has been edited by aurora97: Jan 23 2008, 10:14 PM
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, of course any investment also there is risk, risk is equated to your gain and also the market anyone might venture into. It is a matter of risk tolerance which varies from person to person.
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