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Only1Stewie

$14.70K

Apr 2

So, How Does It Work? Robinhood Futures!
OVERVIEW RH offers 38 indexes to trade futures on. Each one requires you to have a certain amount of available cash (buying power) which is known as your margin requirement. For my journey, I am only using cash available to me - I never use actual margin, which I like to consider a line of credit. FUTURE INDEXES Lets start with a popular index, and the one I have been "learning" on. MESM25. This requires $1,723.70 of buying power to open one contract. The index moves in increments of 25 cents, with each movement being worth $1.25 per contract you open. So, one contract moves $1.25 per tick, 2 moves $2.50 per tick, and so on. FEES There are fees associated with the purchase and sale of each contract. $1.12 to open and $1.12 to close. Multiply that by the number of contracts you open or close (but also, multiply your tick value of $1.25 by the same number of contracts). So maybe think twice about buying and selling as soon as you see your position barely go green! OPENING / CLOSING A POSITION I won't get into when to buy and sell but focus solely on the action of buying and selling. I prefer the "Ladder" feature, which lets me open and close positions in a few ways. I can adjust the number of cons by changing the "qty" and hitting "buy MKT" to go long or "sell MKT" to go short. Similarly, if I have a target price, I can do the same on the specific strike price I wish to go long or short from. Once in a position, to close, perform the opposite function: if you went long, sell MKT or sell at a strike. RH Futures lets you set multiple exits (so you can set a desired Take Profit or Stop Loss!) What I like the most about the Ladder is that if price is moving fast and I want to scalp, I can get in and out by using buy MKT or sell MKT accordingly. It also has a button at the top which lets me cancel and close all orders (fast exit and avoids being tagged in if you forgot about a buy or sell order).
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