NYMEX Membership
I've been looking into the membership application process for the CME, with an eye towards the NYMEX division. From what I can tell, I will need to: 1.) find a clearing member to back/guarantee my trades 2.) fill out the application and submit a non-refundable $2000 fee 3.) attend a course on the market/exchange if my application is successful 4.) lease or buy a membership within 30 days of being accepted
Practically speaking, 1.) As for clearing members, what is a realistic amount that I should have available? I believe the federal minimum for day trading is $25k and MBF, for example, requires $100k. I imagine there is some middle ground, and wonder who, specifically this might encompass, and what their requirements are. 2.) Is the application straightforward with regard to objectivity? The exchange requires that applicants have "good moral character." If I do not have a criminal record, or any outstanding loans, should I be alright, or is this their way of collecting $2k and keeping people off the floor? 3.) I believe the exchange schedules you automatically for the next available class. Please correct me if I misunderstood. 4.) Looking at the number of listed memberships for lease, I do not believe this will be a problem.
And, perhaps a more important question is- for someone who hasn't worked on the floor of the NYMEX, would I be better off beginning as a runner for an experienced trader, rather than jumping in with my own money?
Thank you.
Why do you want to become a floor trader?? Not saying you have to trade from the floor with a membership.... and 2, if you haven't traded before back to my first question. Why do you want to become a floor trader?
Dude, the NYMEX used to be the BALLS and I applaud you for thinking about it. Not sure how it works now with everything being electronic, but at the very least you should be able to score some poon with your patch.
Subscribed!
Thanks for the quick responses. I see that open outcry is in decline and it is likely that in a few years there will not be the opportunity to trade face to face on an exchange. I believe that seeing how different traders interact with one another and the market would be hard to replicate by trading on my computer. From the CME website, it seems that about 10% of trades still go through the floor- this seems to be enough volume to learn from.
Also, could you please explain the "Subscribed!" comment?
@bankersdozen
Ok, I can semi understand your logic behind it.
1.) Futures trading does not require an account minimum. $25k rule is for stocks. I don't quite understand the last part to your question. 2.) Form is straightforward they really only care about financial crimes and bankruptcies. 3.) Yes 4.) and Yes
I think becoming a runner first would aide your growth.
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