Day Trade

In and Out in the one day.

The share market’s volatility is one of the reasons why day trading the SPI 200 is increasing in popularity among a wide range of investors. Day trading the SPI 200 presents investors with dynamic trading opportunities without the risks associated with holding positions overnight and having the market open sharply against you in the morning. The high volatility suits day traders who like to trade the big up and down swings in the market. With day trading, investors know exactly where they stand at the end of each day. You are always in control of the situation because as your positions are closed at the end of the day, your investment is not held to ransom by overseas market action while you are sleeping. Win or lose, your result is known at or before the end of the day. Tomorrow is a world away for day traders. Risk can be managed using stop loss orders at no extra charge. Most stop losses are placed when positions are originally taken.

Effectively trade small market movements.

Most investors have market opinions relating to future market direction. Day trading offers you a fast and efficient means of trading based on those opinions. The low brokerage allows you to trade small market movements. For example, if you bought the index at 3210 and sold at 3230 you would have made $500 profit or 20 points (20 points x $25). If you were wrong, and the market fell 20 points and you sold at that level, you would have incurred a loss of the same; that is how it works. Every 1-index point is worth $25 dollars; therefore day trading offers trading opportunities on a second, minute or hourly basis.

Trade the whole market instead of stock picking.

“Stock picking” and looking for hot stocks has always been a minefield. With thousands of shares to choose from, stock picking can be like “looking for a needle in a hay stack”, not to mention the large sums of capital needed. SPI 200 trading offers you the opportunity of trading a portfolio of shares that make up the S&P/ASX 200. Instead of paying brokerage per line of shares, you pay a flat rate for the whole index, which is the equivalent of a balanced portfolio of shares with a value of $25 x the current index point figure. For example, lets assume that the Share Price index has a point value of 3300. The cash value of the index is therefore 3300 x $25 = $82 500. In other words you have a virtual balanced portfolio of shares valued at $82 500 for the day. This is for one contract only. If you were to buy and subsequently sell 10 contracts, you would multiply the cash value by 10, that is 10 x 82 500 = $825 000. As every one-point move is worth $25, the leverage is attractive.

Powerful leverage and low capital

When you hold SPI 200 futures overnight, you are required to maintain a minimum of $2500 per contract (varies from time to time) in your trading account. This is called the initial deposit. It is still powerful leverage, however with day trading, as you are not holding positions overnight, initial deposits do not apply. Therefore on one contract, you can hold an $82,500 share portfolio for the day with minimal capital outlay.

Fast, efficient service

You receive your fill confirmations in seconds whether you are at a party, in a restaurant, in your car or playing golf. You don’t have to go through a receptionist because our lines deliver you straight to our dealing room. Our lines have never been engaged because they are automatically routed to our advisory team.

Day trading the SPI 200 suits beginners as well as professionals.

You don’t have to be a professional to day trade the SPI 200. We maintain that day trading is a good starting point if you haven’t traded before because if your positions are closed at the end of the day, you are not exposed to overnight risk. The SPI 200 also trades in our time zone enabling you to seek advice, support and second opinions via the resources of our experienced dealing room staff.

Day trading recommendation Service

We provide recommendations that specialise in day trading. Here, we contact you before the potential trade that day. The entry, stop-loss and exit levels are usually set at pre-arranged levels before the trade takes place. This enables you to work or play without being shackled to price information screens. Trading opportunities are largely generated through CK Locke & Partners expanding research division.

We recommend utilising our day trading recommendations if you are new to trading because it familiarises you with order placement and stoploss insertions and gives you a good general feel of how futures markets behave. Our mechanical day trading applications teach you to trade in a structured and disciplined manner. With this type of trading, we contact you before the trading session begins in order to present you with the recommendation. You then make the decision as to whether or not you will place the recommended order.

Many new traders begin day trading the SPI 200 using our mechanical trading structure and later build up the required confidence to generate trades from their own resources. We believe that day trading should be your first step to domestic and international futures trading. In any case, we are here to help you.

Day trading opportunities in our time zone

Below are examples of popular regulated share price indexed futures that can be day traded in our time zone. All can be traded through CK Locke & Partners.

Share Market Indexes	Value per index point move.	Country	Futures Exchange
SPI 200	$25	Australia	Sydney Futures Exchange (SFE)
Nikkei	500 JPY / 6 AUD*	Singapore/Japan	Singapore Exchange (SGX) or Osaka Securities Exchange (OSE)
Kospi 200	500,000 KRW / 550 AUD*	Korea	Korean Stock Exchange (KSE)
MSCI Taiwan Index	100 USD / 75AUD*	Singapore	Singapore Exchange (SGX)
Hang Seng	50 HKD / 10 AUD*	Hong Kong	Hong Kong Futures Exchange(HKFE)

*Approximate and subject to exchange rate fluctuations

Day trading opportunities via European and USA share indexes.

Below are examples of popular regulated share price indexes futures that can be day traded in the afternoon/evening and night: All can be traded through CK Locke & Partners.

Share Market Indexes	Value per index point move	Country	Futures Exchange
DJIA	$10 (US)	USA	Chicago Board Of Trade (CBOT)
Mini Dow Jones	$5 (US)	USA	Chicago Board Of Trade (CBOT)
S&P 500	$250 (US)	USA	Chicago Mercantile Exchange (CME)
E-Mini S&P 500	$50 (US)	USA	Chicago Mercantile Exchange (CME)
Nasdaq	$100 (US)	USA	Chicago Mercantile Exchange (CME)
E-Mini Nasdaq	$20 (US)	USA	Chicago Mercantile Exchange (CME)
Dax	€25	Europe	European Exchange (EUREX)
FTSE	£10	London	London International Financial Futures Exchange (LIFFE)

Day trading futures offers investors an exciting and dynamic means of gaining exposure to the entire share market in a fast, efficient, and regulated environment, whilst using a fraction of the capital that would be required if you were trading physical shares. Many day traders get in and out of futures several times a day, switching direction quickly and efficiently with one simple order. A major benefit of trading futures is the ability to trade both rising and falling share markets.

Summary of Day Trading Futures:

·         Trade small market moves.

·         Ability to short sell –double your trading opportunities.

·         Flexible order instructions – profit objectives, loss limitations and conditional orders.

·         Known result in seconds, minutes or by the end of the day.

·         Trade with leverage over the whole market rather than individual physical stocks.

·         Diversity of markets available to trade.