greenparrot22
Junior Member
- Nov 19, 2023
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Is that a lot of charges to do future trading with long or short positions?
Futures Trading
- Thread starter greenparrot22
- Start date
- Jan 25, 2010
- 1,542
- 982
Yes. Comparatively, the cost of leverage and fees is much less when trading futures like ES/MES or NQ/MNQ vs crypto. And the costs of that leverage are pre-defined.
For example, if I go short on BTC on Kucoin, I don't really know the cost of the leverage I'm taking out until the trade is over. The leverage fees associated with that trade vary based on the ratio of the market that has gone long vs short.
Some trades I lost 40% of my ROI to fees bc of this. Ofc it can also work in your favor sometimes as well. But overall it ate way too much profit and I moved to ES/MES where there is zero cost of leverage and a defined transaction fee per buy/sell.
For example, if I go short on BTC on Kucoin, I don't really know the cost of the leverage I'm taking out until the trade is over. The leverage fees associated with that trade vary based on the ratio of the market that has gone long vs short.
Some trades I lost 40% of my ROI to fees bc of this. Ofc it can also work in your favor sometimes as well. But overall it ate way too much profit and I moved to ES/MES where there is zero cost of leverage and a defined transaction fee per buy/sell.
greenparrot22
Junior Member
- Nov 19, 2023
- 130
- 45
Thanks but what is ES/MES?
- Jan 25, 2010
- 1,542
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ES stands for E-mini S&P 500 futures
The E-mini S&P 500 futures contract tracks the S&P 500 Index. It trades on the Chicago Mercantile Exchange under the ticker symbol ES. MES is the 'micro' version of that with less leverage and cheaper cost per contract. These contracts track the stock prices of the largest U.S. companies listed on the S&P 500 Index.
My comment would also apply to any other futures: gold, oil, other commodities, etc. I just don't trade those.