#005 - Are You Overpaying Your Futures Broker on Margin?

At Active Day Trader we don’t see how anything is “cheap” or “expensive” on it’s own. A core part of our strategy is identifying relationships and correlations, then finding the best way to express our opinion through hedged positions in the form of pairs or spreads.

We recognize the reluctance that many face when learning to trade futures; the margin requirements can be substantial, so we want to let you in on a secret!

If you aren’t executing these simple strategies with the correct broker, you may be lead to believe there is a reason to pay for extinct indicators to experiment with “directional bias” or just give-in overpriced margin holds that tie up your precious trading capital.

Today, I spoke with Patrick from Infinity Futures, a Chicago-based boutique brokerage firm that truly supports clients around the globe.

Patrick helps me get a better understanding on topics like:

>> Margin requirements and Exchange Recognized Spreads

>> Why your 1:1 pair shouldn’t tie up $10K

>> Risk, obligations and the intelligent way to trade futures

>> The seemingly endless cycle of retail education

>> Why support is so important

00:30 Risk, leverage and mathematics

03:00 Guaranteed Margin

03:40 Infinity Futures; A quick history

04:45 End-of-day margin hunting: Exchange Recognized Spreads

05:15 Bond:Ultra Bond - $10,000 or $1500?

07:30 SPAN, SCM and the lowest margin requirement

09:18 You don’t have to speculate on direction

11:20 “An underused strategy”

13:25 SPAN Calculators - An intelligent freebie

15:30 Risk, obligations and respect

18:15 A sucker’s play: Is your capital tied up?

21:00 Is the new iPhone expensive?

23:00 The importance of retail education, Jim Cramer and BIG changes

27:00 Don’t fall into the cycle, keep it simple

30:30 The market will change. Does your indicator?

31:40 A ratio set indicator - the longest correlated relationship?

33:00 Everyone needs support

36:00 The UK, Australia and Singapore

38:00 Liquidity and orderbook issues

40:30 Bonds: You MUST know the yield curve

42:20 Free Stuff!

42:50 Vetting Process and parallel beliefs

45:45 Ask us your questions!

Links Mentioned in today’s Podcast:

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