New Futures Website | John McNichol | 12-3-19 | Getting Started with Futures

good morning everyone John McNichol
standing in from a good friend Barbara Armstrong and this is getting started
with futures we’re gonna take give you a walkthrough on our new Future Sight so
stick around all right good morning to you those you
here live like April and Mark as well as those you listening to the archived
session once again John McNichol for getting started with futures you can see
my Twitter handle on the screen there if you’d like to
follow you can probably learn more about the markets as well as what we here at
TD Ameritrade education do or various instructors and coaches probably learn a
little more about ourselves as well so that’s @j McNichol underscore TD a if
you’d like to follow along let’s take care of disclosures and we’ll get right
into it as we only have just a little bit of time together here today fun
presentation is for educational purposes and is not a recommendation or
endorsement of any particular investment or an investment strategy past
performance does not indicate or guarantee future success futures and
futures options trade is speculative not suitable for all investors carefully
read the risk disclosure for futures and options at links provided for you here
futures futures options trading services are provided by TD Ameritrade futures
and Forex LLC those trade privileges are subject to review and approval not all
clients will qualify now while this webcast may look at technical analysis
other approaches include fundamental analysis may serve very different views
the transaction cost Commission’s any trade 0 Commission applies to online us
exchange listed stocks ETFs option and options trades there’s a 65% options
contract fee applies to option trades notice there’s no mention of futures
there are still commissions and fees on futures now in order to demonstrate the
functionality of the platform we may be used in actual symbols keep in mind TD
Ameritrade does not make recommendations or determine suitability of any security
or strategy for individual traders any investment decision you make in your
self-directed account is solely your responsibility as well as past
performance of any security or strategy does not guarantee future results nor
success now there is an application called paper money which is for
educational purposes and successful virtual trading during one time period
does not guarantee a successful investment of actual funds their later
time period as those market conditions change continuously and as always all
investing involves risk including the risk of loss. recently released
webpage for futures it’s accessible at TD Ameritrade comm forward slash futures
TD Ameritrade dot-com forward slash futures effect let me go ahead and bring
it up on the thinkorswim platform i have it highlighted right here so if you’d
like to follow along you can go ahead and do that
TD Ameritrade dot-com forward slash futures a recently released webpage that
what I think does brings together a lot of the the content that we currently
offer as far as futures maybe can kind of give you a bit of a pathway as well
on top of these various webcasts here now if you have any questions on
anything that we’re discussing here today please go ahead and type that into
the chat and while you’re looking at that chat as well notice there’s also a
subscribe button for trader talks if you like what you listen here today as well
as some of our various other content you can click on subscribe turn on
notifications and be informed on some of our various webcasts that are available
all right so let’s kind of do a bit of a walk through I can’t I think I could
probably do this on the big screen so let’s go ahead and take a walk over to
that once again TD Ameritrade comm forward slash futures and when we go
ahead we come to this page here well first off there’s a button there where
you can actually click to open an account and apply for Futures Trading if
that is something that you’re interested in you know if we want to maybe learn a
little bit more about what’s available we can go ahead and scroll down let’s if
I can scroll down on the page here study up on futures right off the board we can
start learning about the futures market so I’m going to go ahead and select
start learning and we can see some of the educational resources that are
available learning about futures for instance and introduction on some of the
futures invest in basics capital efficiency and you can drill down and
learn more about some of these topics as well go ahead and click on that as it
allows me to there we go now usually on this page
we’re going to see some examples of some possible learning a combination of some
reading as well as taking a look at some of the contract specifications and to
that end here if we kind of come up there is a menu over on the left-hand
side let’s kind of spend a little time on here let’s for instance talk about
futures contracts and positions there so if I go ahead and click on future
contracts and positions we can go ahead and see a drop down on understanding
everything from futures margin and capital requirements to mark-to-market
this is how futures are settled each and every day and also understanding the
difference between physical and cash-settled contracts also know that
futures roll meaning there is an expiration and there’s a new month that
comes on board after that there likewise let’s go ahead and take a look at some
other information here let’s say types of futures and we can see some of the
more widely traded contracts that are out there a lot of emphasis on indices
such as the Nasdaq the S&P since a lot of you may already be trading stocks or
equity options you know understanding the leap into futures is not necessarily
that big of a stretch there so things from stock indexes on the e-mini x’ also
that micro futures if I go ahead and click on explore those resources they’re
good break down on educational videos on the micro mini futures one of the newer
contracts that came out as well as on some of the other contracts that are
available we also some examples on some additional resources they
you can drill-down to kind of like a quick info guide on that Micro future
there for those of you that are newer investors or smaller accounts the micro
futures do give a little more flexibility for investors with smaller
account so if I go ahead and build that up a little bit you can see a breakdown
from the SP micro compared to the traditional mini contract really the
bottom line is the SP future contract has a multiplier of $50 so I get that on
there has a multiplier of about $50 where in the case of the micro contract
has a multiplier of five so less leverage it may be more conducive to
investors with smaller accounts and when we take in an account that multiplier
you know we can see how that leverage comes into play with the market even for
today you know as we go ahead and glance at the SP 500 looking at the futures you
know here’s a daily chart we’re in the midst of a pretty good pullback notice
that price action for today over the last two days have basically erased any
of the games going back almost for the last two weeks they’re almost for those
last two weeks now that could be a bit understandable when one looks at the
market and see how much it’s been up since the beginning of October you know
in a lot of cases up you know eight ten percent or more so seeing some of those
retracements can’t happen they can be a bit of a shock to the system where
investors are used to seeing those prices going higher but if you actually
look at my twitter we talked about that resistance that the market had actually
traded up to kind of in a top of a bit of a channel no guarantee that prices
would have backed off of that but that seemed to happen and look at these two
days incorporate that multiplier into the mix
when you see that we had a high of about 157 let’s see it was about three three
thousand one hundred and fifty seven so that was a the the hi there
right now we’re at thirty seventy seven you know that’s a difference of about
about eighty points so do the math 80 points times fifty okay that should be
somewhere along the lines of about four thousand dollars that’s in the case of
that in the case of the /es now looking in the case of the /m es which is the
micro that’s a five multiplier so the impact on this is going to be less to
the tune of about four hundred dollars either way that could be a significant
gain or loss over a relatively short period of time so that is the impact of
leverage on these contracts here let’s go ahead and go back to the website let
me bring that up and we’ll go ahead and bring up some of the other resources
here again if we can go ahead when you click on the menu up at the top here as
well there’s several ways to drill down on the information let’s if I keep that
screen on there intro the futures futures contract and positions types of
futures how to place the trades and even a futures trading FAQ let’s go and bring
that up for a moment here allows us to do that and fingers a little sensitive
there so walk through on how we can place a trade on the thinkorswim
platform what types of contracts can be traded and right here we can see some of
the tradable products now then keep in mind with TD Ameritrade futures and
Forex there may be dozens of futures contracts that are out there that are
also optional however they may not all be available for trading on TD
Ameritrade so right here on that FAQ again under
education resources we can look at a list of those tradable products so we
can go and bring that up and on this page here which is also accessible via
the TD Ameritrade website here are lists of the various futures products also if
they are optional now those of you that are trying to learn about futures but
maybe want to do some more define risk trades just like in the equity side
options may be an area to explore on my Monday session I do trading futures will
integrate some futures options trading into the mix as well and you can see
which of these contracts are generally optionable we try and cycle through some
of the different asset classes so we’ll cover down on not only stock indices
right now we’re looking at some of the so we can clear this out here we’re
looking at some of the interest rate futures and some of those are optionable a
lot of the different durations such as the thirty-year the ten-year five-year
we cover down on that in the trade and future session looking on stock indices
ones that are optionable are pretty much going to be the the Nasdaq the Russell
and the S&P 500 are optionable looking at energy basically it’s a light sweet
crude crude oil and natural gas are optionable and look at some of the softs
softs are your grains and many of these are a correction softs are actually
coffee sugar cocoa orange juice there’s actually one for grains grains would
cover corn wheat soybeans are a couple of ones that are actually optionable and
if you follow our Monday session on top of doing some technical practice trades
we’ll also go ahead and do some spread trades on some of these various asset
classes and so stay tuned for our next and that will be coming up on Monday
there let’s see if you have any questions folks I do not see any
questions at the moment there let’s see what else we can explore here and this
just came out just over the the past week or so and we’ll continue to update
this on a regular basis pretty informative once again on the FAQ s on
education and resources and futures trade and FAQs on understanding
training hours how to apply for futures approval what types of accounts are
eligible to trade futures you know as you look at this and let me blow this up
a little bit more as we get some of the ones that are available free futures you
know some investors don’t recognize that you know on top of you know individual
and joint accounts you may be able to trade futures on some of your individual
retirement accounts may be eligible for that SEP sir and even traditional there
now remember it’s all a matter of trade which you know you want to certainly
have an understanding of these instruments before you trade and keep in
mind you can go ahead and actually practice that you know we got the
thinkorswim platform which hopefully some of you are already utilizing we use
that extensively in our trading futures class also on Thursdays there’s another
futures class I believe at the look at the calendar here named escaped me for a
second it would be on our active trading series at 12:30 Eastern Time a good
friend Mike Follette does leverage in capital with futures so you basically
have three opportunities to learn about futures via the webcast in addition to
the information you have on the website and their educational resources getting
started with futures Monday futures trading and on Thursday leveraging
capital with futures so hopefully you learn something a little new today and
again you can practice all of these segments here on the thinkorswim
platform you know see if there’s any other nuggets here let’s take a little
deeper dive on the educational side here so you know if we go back on the on the
main page so if it takes us there we can go to home as we go ahead and scroll
down on the page and take a look on learning more start learning and on top
of these segments if we scroll all the way down to the bottom of this page on
top of some of these fa Q’s that we were just looking at
keep your futures learning ongoing got some pretty good informative videos that
probably helpful in this market refer to how hedging can reduce risk and also
beta weighting of portfolio two videos that I’ve done there that for some
investors if they’re looking for some downside protection when we do see these
pull backs there are ways of potentially doing that with futures likewise if we
take a little deeper look down you can go ahead and preview the course now if a
lot of you that are actually on this webcast
more than likely already have or potentially have an account with TD
Ameritrade so you already have access to this education but for some of your
friends or other associates here they can get a glimpse of our futures content
such as understanding margin how to use some of the tools like futures trader
reducing volatility and beta weighting and if you scroll down the bottom you
can go ahead and log in directly to the futures course
so really step-by-step you can continue on your learning and if you haven’t
already taken a look at that futures course we encourage you to do that
some of you may have already done so and it’s certainly good for
another review so if I go ahead and log in for a moment here once I log in will
take me directly to that futures course we’re gonna do a deeper dive and there’s
even a sample investing plan to kind of go over a little more detail on the
video that I did on hedging and how one can basically hedge and account with
futures so let me give a few moments for any questions there hopefully you learn
something new today hopefully you’re also excited as I am with the the
introduction of a new futures page they’re good content and will continue
to be built up and what I encourage you to do kind of a takeaway is go ahead and
explore this website which once again is forward slash futures
take a look at the FAQ if you want to learn more about how to open a futures
account or learn about what some of the other requirements were are and also
some of the futures now if you want to continue learning go ahead and view the
coursework as well as some of those videos and then put in a practice which
you learn by practicing traits and particularly on that Monday session and
on Thursdays you’ll see us actually go ahead and put in practice trades on some
various futures contracts as well as some of the futures options so it’s been
a pleasure to spend some time with you here today
and take you a walk through on our futures page once again hope you learned
something new today and remember folks in order to demonstrate the
functionality of the platform we had to use actual symbols keep it in mind TD
Ameritrade does not make recommendations or determine suitability of any security
or strategy through the use of our tools any investment decision you make in your
self-directed account is solely your responsibility so John
McNichols sign it off we’ll let you go for the day happy trading and we’ll talk
to you again real soon bye now

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