Futures Questions, Answered (Hawaiʻi)

Trading from Hawaiʻi: times, classes and taxes

• What time does the futures market open in Hawaiʻi time?
  Most CME futures, like the Nasdaq 100 and S&P 500 contracts, open for the week on Sunday at 12:00 pm HST and close on Friday at 11:00 am HST from early March to early November.
• What time does the stock market open in Hawaiʻi?
  The New York Stock Exchange opens at 9:30 am Eastern Time.
• What time do CPI, the jobs report and Fed decisions come out in Hawaiʻi time?
  The monthly CPI inflation report and the monthly jobs report come out at 8:30 am Eastern Time.
• What time are the Tokyo and London sessions in Hawaiʻi time?
  The Tokyo stock market opens at 9:00 am Japan time, which is 2:00 pm HST the day before, all year, because neither Japan nor Hawaiʻi changes its clocks.
• Do futures hours change in Hawaiʻi when the mainland changes its clocks?
  Yes. Hawaiʻi stays on HST all year, but CME sets futures hours in Chicago time, so every futures time in Hawaiʻi moves one hour when the mainland changes its clocks.
• What is the best futures trading session if I work 9 to 5 in Hawaiʻi?
  There is no single best session, but a 9 to 5 job in Hawaiʻi leaves three real windows.
• Are there futures trading classes in Hawaiʻi?
  Yes, but most futures education for Hawaiʻi traders is online, because the markets are online and their hours are set on mainland time.
• How are futures gains taxed for a Hawaiʻi resident?
  For federal taxes, regulated futures are section 1256 contracts.

Getting started

• How much money do I need to start trading futures?
  There is no single legal minimum. Each broker sets its own minimum deposit, and the exchange sets the margin for each contract.
• Can you lose more than you invest in futures?
  Yes. The risk disclosure that the CFTC requires brokers to give you says you can lose all the money you deposit, and you may incur losses beyond these amounts.
• What is the difference between micro and E-mini futures?
  A micro futures contract is one-tenth the size of the matching E-mini contract.
• What happens when a futures contract expires?
  Every futures contract has a last trading day.

Prop firm rules

• How does a trailing drawdown work in a prop firm evaluation?
  A trailing drawdown is a loss limit that follows your account up but never comes back down.
• What is a consistency rule in a prop firm evaluation?
  A consistency rule limits how much of your total gain can come from your single best day.
• Are futures prop firms regulated, and is a funded account real money?
  Most futures prop firms sell evaluations.

Learning and practice

• How long does it take to learn to trade futures?
  You can learn the basics, like contract values, margin, order types and sizing, in a few weeks of study.
• What should I write in a trading journal?
  Write down the facts of each trade: market, time, size, entry, stop, target, exit and the result in dollars.