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Moorhead, MN | dpilot83,
I'm a broker (clear through FCStone) and although I don't clear trades through Thinkorswim I've used them a long time personally. I can help you answer any questions you have on TOS or hedging in general. Feel free to e-mail me if you have any questions.
My advice to you is to review this hedging handbook from the CME/CBOT (http://www.cmegroup.com/trading/agricultural/self-study-guide-to-hedging-with-grain-and-oilseed-futures-and-options.html) and place your first few trades through a full-service broker. One mistake would cost you many, many commissions.
One other comment is that it's easy to turn your hedging into speculating when using futures I think they are a great, great tool if used properly. I talked to one farmer who was a very advanced marketer. In 2008, he sold corn at $4.00 futures and he lifted his hedges at $7.00 futures and locked in a $3.00 hedging loss. The problem was that he didn't make the cash sale when he lifted his hedge and actually sold that corn back down at $4.00. $4.00 cash - $3.00 hedging loss = $1.00 net price (OUCH!). All the benefit he received from futures hedging were erased with ONE mistake!
Good luck with learning these tools! | |
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Electronic vs Open Outcry for commodities
