I hope im allowed to "Index"

Beginner Questions
1

I have been trading/studying Forex since 2008, I finally feel like I am getting the hang of things. Depending on how this month goes, I should be going live again very soon!!! :51:

I want to increase my trading portfolio by starting to demo trade the following 3 indexes:
S&P500
FTSE
Dax30

I have no experience when it comes to trading these indexes, I would really appreciate some help and advice, that is if I am allowed to ask this here on Babypips, since it is mostly a website dedicated to FOREX. If not please remove this thread.

Some beginning questions I need help with:

  1. Are those 3 Indexes a good option to start with?
  2. What are the market hours? Surely it is not 24 hours like FX.
  3. How do commissions work, is there something similar like the “spread” in FX?
  4. Any other advice would be very helpful!

Thanks
MrMoleMan

2

Yes those are some good indexes. If you have a gooId trading strategy then it should work on all forex and everything else. As far a market hours the dax and ftse is London session I think I dont trade them. the S&P is NY session. I trade the eminis all the time.

4

agreed here, I like the emini’s myself. DAX in FF and LO is solid, SP500/DOW for NY is a great imho.

5

Man I just realized that was my 1000th post. I guess I am old now

6

Well done Bobmaninc, you fingers must be tired!

OK I am not too aware of what emini’s are but according to google it is a futures contract from the Chicago Mercantile Exchange.

Now if I had to trade the S&P500 with my broker (markets.com) would this be what people call an ETF?

Also it seems there is a 8 point difference (S&P500 Spread), which means if I opened a trade at a 1.00 volume I would start with a deficit of $8.00?

7

Your Super Secret Decoder Ring is in the mail :slight_smile: All the Honorary FX Men get one.

I read a really good article about indexing a while back, I’m gonna try to find it.

8

I read a really good article about indexing a while back, I’m gonna try to find it.

I take it you didnt have any luck finding that article? :33:

9

E minis are just mini contacts of the S&P 500.

10

So to let me see if I understand you correctly:

Currently when I trade on a 0.01 volume on the S&P500, 1 point = $0.01.
So with an emini if I traded on a 0.01 volume, 10 points = $0.01?

11

No that is incorrect. Each 1 point move in the S&P500 index is worth US$50 per contract and the minimum move of the Emini futures contract (tick size) is 0.25 index points or US$12.50 per contract.

12

OK, not as simple as FX!

Please explain the following:

FTSE pic.jpg700×121 10.5 KB

I opened the following trade on a size of 0.01. My TP triggered and I ended up with a profit of $68.16.

Why?

If I deduct my entry to my exit: 5814.75 - 5772.00 = 42.75 points. How do I calculate that amount to get to $68.16?

13

Also, I use the MT4 platform, when i hover my mouse arrow over the FTSE symbol or any other symbol for that matter in the market watch window it brings up a little info bar saying 1lot = 100. I look at that and go huh!!!???

14

Ok your in South Africa so your laws are different than here. Who is your broker so I can look them up. I will not do the math as I am not good at math but here a 47-48 point profit would have made me more. But still your doing good there.

15

[QUOTE=bobmaninc;338332]I will not do the math as I am not good at math[QUOTE]

LOL! You and me both!

I use markets.com (Online Forex & CFD Trading|Trade Currencies, Gold, Oil and Major Indices), I think they are situated somewhere in Europe.

Thanks for your interest.

16

Ok i think I figured it out but I am not a 100% sure, but it makes sense.

I opened the following trade on a size of 0.01. My TP triggered and I ended up with a profit of $68.16.

Why?

If I deduct my entry to my exit: 5814.75 - 5772.00 = 42.75 points. How do I calculate that amount to get to $68.16?

My current account that I have with markets.com is in USD and it is a Standard account. I opened a trade on a FTSE contract with a volume of 0.01, therefore i believe each point = ₤0.01 (FTSE is a Great British index). Therefore 42.75 points = ₤42.75.
When I closed my trade i think my broker then converts that amount to $. So in this case, ₤42.75 x 1.59 = $68.16.

Makes sense right! :cool: