Commodity future option broker 2015
It is a scenario-based algorithm which attempts to compute the maximum loss your account might reasonably incur within one trading day. The goal is twofold: You can find a lot more detail on the CME website.
The CME and most other participating exchanges construct 16 scenarios, in which the prices of the individual markets are assumed to move up or down by varying amounts, while volatility is also assumed to go up or down.
And what if you are holding positions in some closely-related contracts? For example, maybe you are long an ES futures contract and short an NQ.
Or perhaps you hold an iron condor spread on GC futures options. Or maybe you put on a CL futures calendar spread. Or maybe you wrote a naked put on EC currency futures far from the money. This is where it gets complicated.
SPAN will try lots of different ways of grouping your holdings to compute charges and credits to your overall margin requirement. So if you add a new contract that truly hedges your existing positions, it will reduce the amount of margin you are required to hold. Exchanges and their clearing organizations must ensure that every trader holds enough margin to cover potential losses. SPAN tries to achieve both of these goals.
It consists of four individual contracts, and a naive risk system using quantity limits might charge you four times the margin of holding just one contract. If you want more functionality and are willing to spend more time , you can also download the PC-SPAN app from CME and import parameter files for the exchanges you are trading. Using quotes currently in the market, its payoff diagram assuming no early exercise or assignment looks like this:.
How much should we expect to need in margin to hold this position? In this case, SPAN is over 20x more capital efficient compared to a naive quantity limits algorithm. It can enable a trader to responsibly hold many contracts, provided they are properly hedged. He is a graduate of the University of Wisconsin-Platteville with a degree in Business Administration and an emphasis in Finance and Marketing. Brian enjoys spending time with his family and occasionally finds time for a game of golf.
Before joining efutures in , Roni worked in the retail banking industry, holding specialized positions as both an IRA administrator and Personal Banking Officer. Having an in-depth understanding of the products, services, and capabilities available to traders, Roni enjoys managing new client relationships and the process of client on-boarding.
After interviewing new clients, Roni works with each client one-on-one to pair them with a market specialist, ePro, or ePlus program that best compliments their experience and individual trading goals. Roni is the day-to-day contact for our clients with regard to customer service and trading platform support. She is the friendly voice that our clients have grown accustomed to hearing when calling in to our office and she takes great pleasure in making sure they are each taken care of.
In her personal time, Roni enjoys camping, spending time with her grown children and 16 grandchildren. She also enjoys running, gardening and cooking. Her family owns and operates Leibfried Feed Service, which services farmers throughout Southwestern Wisconsin. She joined the efutures team in April , after attending Madison Area Technical College, in the accounting program. In , she acquired the Series 3 license and is a fully registered Associated Person.
She now enjoys her role as Relationship Manager, on-boarding new clients and working one-on-one to ensure that each client receives personal support and an optimal trading experience. Jablonski Executive Vice President Mr. In her free time, she enjoys spending time with her family and friends, traveling, and crafts.