Quote:
Originally Posted by BroadwayJoe
need to learn more...not an options guy
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this isn't options
it's straight up regular trading
i shorted a share (well, in this case, a futures contract, which acts just like a stock)
that's it...we've been thought this before
Nothing special about this. Basically the same exact thing as shorting SPY or any stock or any ETF based on an index
This particular contract moves in .10 increments...and each tick (or dime) is worth $5 in profit or loss per contract.
So if it moves up 1 point (10 ticks per point @ $5 per tick) and you are long, you make $50 per contract
if it moves down 1 point and you are short, you make $50 per contract
There are other unique rules, like day trading margin ($500 per contract) and overnight margin (around $6,000 per contract if I recall for RTY)
But it's basically the same as trading stocks in terms of the mechanics