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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: nihil who wrote (1108)12/19/1998 7:58:00 PM
From: Caroline  Read Replies (1) | Respond to of 122087
 
I like the depth of the questions you ask brokers. Intelligence does scare away the riff-raff.

A futures broker called me because I had gotten something from their web site.

I explained that I might be interested in trading futures, though I doubted it, and that I needed more than just the CBOT's Dow Jones brochures to understand.

He kept trying to dumb it down, the process of trading futures. "You put in an order, we execute it and if the price goes the right way, you profit."

"Yes, I understand that, but what mechanisms go into pricing? In options, there's implied volatility, historical volatility... there's time built into every transaction. Of course, the risk-free rate of return always has some bearing. What factors are analogous to these when pricing futures?"

They never bothered me again.

CB