What are your trading costs per contract?
Is it a set price per contract or a percentage?
Neither, but the spread between the bid and ask is usually between 2 and 5 one hundredths of a cent.
What is your margin rate?
Up to 200 to 1 (believe it or not) but the site I'm using appears to cap you at 100 to 1 and cashes you out if you get too near 200 (I've been warned once
). The market is remarkably stable compared to stocks, hence the huge margin allowances.
Are they both factored into your winnings for the week?
Yep, except for my open positions, of course.
If it was really this easy, they wouldn't be giving you the opportunity to make money like this. Trading like this is no better than gambling and the brokerage firm where you do your buying and selling is taking the house percentage. Yes, you might be the lucky one but the odds say probably not.
Oh, it's straight gambling, no doubt... but so is every other market.
I'm learning this for professional reasons, as managed accounts are among the products the fella I'm working for offers. I won't actually raise money, or trade on his behalf myself, but I wanted to get familiar with it. What I've found so far is either an anomaly, or this thing just isn't that tough to predict.
My long term theory (for myself) is to spread savings out into several stable currency's, to act as something of an immunity to fluctuations. My prediction is:
If we don't attack Iran, the Euro goes up. If we do attack Iran; the Euro goes up. Seems like a good idea to park some dough in Euros. As a matter of fact; the Euro has out performed the dollar some 40%+ since it's inception. Now; since European banks are every bit as safe as American banks, and some offer much better interest rates (though with only the principal guaranteed), it seems win/win. Imagine if you had some dough parked in Sweden for the last 5 years, for instance, and received the same interest that you would have here... only since your dough was in Euros its value went up an extra 40%. Of course, it could go the other way too... but it seems to me diversification is the most logical way to protect against major moves.
Short Term, just for sh!ts and grins, I decided to try the strategies I've used while day trading the stock market... just to see where it would go. I'm probably behaving about 10 times as aggressive as I would if it were real dough; but the results thus far would make me wish that wasn't so. So far my strategy has been damn near flawless. A couple losers here and there, but I was able to offset most losses by re-buying positions that had taken major dives at the lower price... once in hideous quantity (friggin Yen
Have you done this?