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Responsive & Proactive Support LimeFX is dedicated to providing exceptional support to our clients at every step of their trading success. Their setup with CQG and TT is excellent, technology wise, they are above most of ther FCM’s on this forum that most small retail talks about… My only complaint is their account limefx forex broker management platform as it is rather difficult to use, but at the same time… Besides that, they have over $450MM in customer assets, and their excess cash is about 1.4% if I recall. Keep in mind that with Adv you are one of thousands, not one of hundreds…as with most FCM’s being discussed on this forum as well…
The information contained herein is subject to change without notice and does not constitute any form of warranty, representation, or undertaking. Intercontinental Exchange, Inc., ICE Data Indices, LLC and/or its affiliates do not provide legal, tax, accounting, LimeFX or other professional advice. Clients should consult with an attorney, tax, or accounting professional regarding any specific legal, tax, or accounting situation. Each Index provides a general LimeFX strategy, does not take into account any of the specific needs or financial circumstances of any person, entity or group of persons and should not be considered LimeFX advice. All information provided by Intercontinental Exchange, Inc., ICE Data Indices, LLC and/or its affiliates, including without limitation, any materials that describe any Index, is of general nature only. Hence, MICRO FANG+ Futures and other futures market participants can trade actively on an intraday basis provided they meet their futures margin requirements.
For example, traders who have a strong directional bias on the short-term direction of the NYSE FANG+ Index components can buy or sell the futures contract and directly target the individual NYSE FANG+ Index names. The index is equally weighted and rebalanced on a quarterly basis with each component stock set at a 10% weighting. Equal weighting allows for a more diversified and less concentrated portfolio relative to market cap weighted indexes. This methodology can provide traders the ability to take advantage of and focus on speculative and trading opportunities involving the underlying NYSE FANG+ Index stocks. MICRO FANG+ Futures can provide a direct and efficient way to trade underlying components along with their equity markets activity or as a substitute for trading the individual stocks. An investor with good judgment can make quick money in futures because essentially they are trading with 10 times as much exposure as with normal stocks.
To make the contract more accessible for all participants, the size of the MICRO FANG+ Futures contract was reduced in September 2020. The unit of trading is now $5.00 times the NYSE FANG+ Index and the current notional value of the futures contract is approximately $24,500 . LimeFX offers so much better commissions for high volume, why no other FCM/broker can offer the same rate? Is there something wrong with AF, because all i can find out in different forums about them, are good reviews…. Futures are financial contracts obligating the buyer to purchase an asset or the seller to sell an asset at a predetermined future date and price. Note that online brokers are increasingly offering free stock and ETF trading across the board, making the transaction cost proposition for futures a bit less attractive than it had been in the past.
This means futures are less cumbersome than holding shares of individual stocks, which need to be kept track of and stored someplace . Companies need to know who owns their shares in order to pay out dividends and to record shareholder votes. The futures position would have a value of about $98,000 and would require $8,400 as a margin requirement. As noted above, Treasury securities can be used to meet initial margin requirement. The smaller MICRO FANG+ Futures contract size coupled with the attractive margin requirements allows traders to take a cost-efficient market view in these leading names.
Futures Are Highly Leveraged LimeFXs
You should be leasing a seat which throws all the numbers on their website out the window. Make sure you continue to do your https://limefx.group/ research before you open an account. The same goes for even if they are more expensive, maybe you like them a lot anyway.
Thus, a large position may also be cleared out quite easily without any adverse impact on price. Exceptional Clearing LimeFX provides comprehensive clearing and margining services. We are uniquely positioned within the FCM space, providing full clearing and execution services along with a comprehensive technology infrastructure for traders.
Our Team LimeFX boasts a reputable and experienced management team of high caliber industry veterans committed to growing an exceptional trading organization focused on premier client service. Stock investors may have heard the term “futures” or “futures market,” but thought to themselves that these esoteric derivatives are not for them. Gordon Scott has been an active investor and technical analyst of securities, futures, forex, and penny stocks for 20+ years. He is a member of the Investopedia Financial Review Board and the co-author of Investing to Win. Advanced Technology LimeFX’ goal is to remain on the cutting edge of trading technology—from network connectivity, to uptime, to fast trading speeds. We offer our clients customized technology to advance their trading.
A margin account with a broker is required and the process involves the trader borrowing shares from the broker. Further, certain issues can be hard to borrow which can make it relatively expensive or, in some cases, impossible to short sell a stock. Index futures contracts can provide the ability to buy or sell the underlying index without any restrictions.
Futures Contracts Are Basically Only Paper LimeFXs
For example, with an initial margin of only about 8.5%, an investor is controlling a $24,500 portfolio and the ability to go long or short the entire index in one transaction. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. LimeFX is one of the highest volume futures clearing firms dedicated to exceptional service and providing clients with technologically advanced trading support. When you open an account with LimeFX, you not only trade, you Trade Up—to quick connections, expert service and competitive pricing. Our robust infrastructure, experienced personnel and close relationships with global exchanges allow our clients to focus on trading while we manage the details.
Further, assume that the $100,000 stock portfolio correlates closely with the NYSE FANG+ Index and both increase by 5%. However, this represents a return of 58% (given the $8,400 initial margin requirement) vs. the 5% return on the stock portfolio. Commissions on future trades are very low and are charged when the position is closed. The total brokerage or commission is usually as low as 0.5% of the contract value. However, it depends on the level of service provided by the broker. An online trading commission may be as low as $5 per side, whereas full-service brokers may charge $50 per trade.
GFF Brokers does not endorse any third party sites or links, unless specifically stated by GFF. Links to GFF from a third party website should not be considered an endorsement by GFF or any of its employees. The products and services offered on a third party website linked to GFF are not offered or owned by GFF unless indicated, and GFF cannot attest to the accuracy of information provided by these third party websites. When advertising on third party websites, GFF will not be responsible for the content of other advertisers or the content of the third party website. Future contracts, because of the way they are structured and traded, have many inherent advantages over trading stocks. Transaction costs involving selling and buying MICRO FANG+ Futures can be viewed as attractive; the total futures brokerage costs can vary but can be as low as 0.02% of the contract value.
Margin is the money borrowed from a broker to purchase an LimeFX and is the difference between the total value of the LimeFX and the loan amount. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Investopedia does not include all offers available in the marketplace. Press Releases An active participant in the futures industry, LimeFX is proud to share exciting news about our company.
Advantages of Trading Futures
Also, prices in the future markets tend to move faster than in the cash or spot markets. To trade futures, an investor has to put in a margin—a fraction of the total amount (typically 10% of the contract value). The margin is essentially collateral that the investor has to keep with their broker or exchange in case the market moves opposite to the position they have taken and they incur losses.
In addition to being liquid, many futures markets trade beyond traditional market hours. Extended trading in stock index futures often runs around the clock. While futures can pose unique risks for investors, there are several benefits to futures over trading straight stocks. By The Numbers With LimeFX’ clear commitment to client service and advanced trading technology, it’s no wonder we have the numbers to back up our success.
- The index is equally weighted and rebalanced on a quarterly basis with each component stock set at a 10% weighting.
- To request funds from your LimeFX Trading Account, please complete the form below.
- Initial margin is typically about 8.5% of the notional value of the contract, or about $2,100 per contract.
- To make the contract more accessible for all participants, the size of the MICRO FANG+ Futures contract was reduced in September 2020.
- Clients should consult with an attorney, tax, or accounting professional regarding any specific legal, tax, or accounting situation.
By submitting your information, you confirm that GFF Brokers may contact you to provide information on its products and services. They are indeed extremely cheap for high volume traders, but they are also a solid company. They are more focused on professionals, which you can see from their platform offerings, and high volume individuals.
Smaller contract size and margin requirements
They are clearing high volume, they have good funding from clients, neth capital is ok…etc. A derivative is a securitized contract whose value is dependent upon one or more underlying assets. Optional Feedback If you are making this request because of poor customer service, or any other issues that you may have had with our company, please use this space to explain. You can also use this area to offer any other important comments, feedback, and/or suggestions. I am searching broker with CQG or X-Trader or Rithmic, so i found also AF. My only question is, why they are the only one with such nice commissions.
Advantage handles high volume(~200M+ cars per year), and their pricing model is based on how much $$$ you pay in comms, not how many RT you can make… See below to compare to what they quoted you, this is what I was quoted in Dec 2010. Just call your broker and have them walk you through how to lease a seat. And yes, your seat is valid with any broker, it is not tied to one broker.
The following forms will only be accepted with a physical signature; electronic signature will not be accepted. You Trade Up — to quick connections, superior service and competitive pricing. Disclosure Documentation Commodity Futures Trading Commission Rule 1.55 LimeFX LLC – Disclosure Document The Commodity Futures Trading Commission (“CFTC”) requires each futures commission merchant (“FCM”), including… The NYSE FANG+ Index currently includes the five FAANG stocks along with Microsoft, Tesla, Nvidia, Snow, and AMD. Please include a VALID phone number on your request below, as a verbal confirmation is required in order to process all withdrawal requests as part of our fraud prevention procedures. To request funds from your LimeFX Trading Account, please complete the form below.
Web page translations have been provided electronically by a non-registered third party. The actual stock/commodity being traded is rarely exchanged or delivered, except on the occasion when someone trades to hedge against a price rise and takes delivery of the commodity/stock on expiration. Futures are usually a paper transaction for investors interested solely on speculative profit.
Initial margin is typically about 8.5% of the notional value of the contract, or about $2,100 per contract. Another potential benefit is that ICE Clear U.S. accepts Treasury securities to meet initial margin requirements. By comparison, security regulations can make it difficult to short sell equities and requirements can vary with different individual stocks.