I'm just getting started in trading and am looking to implement a rule based strategy trading futures outright. Commissions obviously have a huge impact on final P/L, but this must be even more the case when trading spreads? Can you please comment on commission and margin and how they relate to spread trading? May I ask you how much commission you pay and if you can recommand a broker? Many thanks, Manuel
Hi Manual, Commissions are a huge part, and in spreads they add up, but margins are much lower cause you are hedged. I think paying between 80-90p per round turn in Fixed income products is good, I pay 84p, although you can get it alot cheaper depending on how much volume you do. In terms of broker I trade through a prop house, but Global Futures is a good one with good rep too.
I'm just getting started in trading and am looking to implement a rule based strategy trading futures outright. Commissions obviously have a huge impact on final P/L, but this must be even more the case when trading spreads? Can you please comment on commission and margin and how they relate to spread trading? May I ask you how much commission you pay and if you can recommand a broker? Many thanks, Manuel
ReplyDeleteHi Manual,
ReplyDeleteCommissions are a huge part, and in spreads they add up, but margins are much lower cause you are hedged. I think paying between 80-90p per round turn in Fixed income products is good, I pay 84p, although you can get it alot cheaper depending on how much volume you do.
In terms of broker I trade through a prop house, but Global Futures is a good one with good rep too.