Hi,
How do they really calculate unit size?
Quote from the WAY of the TURTLE:
===
The unit size for the 6th of December, 2002 (using the N value of 0.0141 from the 4th of December), is as follows:
Heating Oil N = 0.0141
Account Size = $1,000,000
Dollars per Point = 42,000 (42,000 gallon contracts with price quoted in dollars)
Unit Size = (0.01 x $1,000,000) / (0.0141 x $42,000) = 16.88
====
Why Dollars per point is $42000?
Minimum price fluctuation if heating oil future is:
Minimum Price Fluctuation
Heating Oil Futures and Options: $0.0001 (0.01¢
per gallon ($4.20 per contract)!!! Not $1 per gallon.
http://www.wtrg.com/daily/heatingoilprice.html
Thoughts?
Tnanks in advance,
Alex
How do they really calculate unit size?
Quote from the WAY of the TURTLE:
===
The unit size for the 6th of December, 2002 (using the N value of 0.0141 from the 4th of December), is as follows:
Heating Oil N = 0.0141
Account Size = $1,000,000
Dollars per Point = 42,000 (42,000 gallon contracts with price quoted in dollars)
Unit Size = (0.01 x $1,000,000) / (0.0141 x $42,000) = 16.88
====
Why Dollars per point is $42000?
Minimum price fluctuation if heating oil future is:
Minimum Price Fluctuation
Heating Oil Futures and Options: $0.0001 (0.01¢
per gallon ($4.20 per contract)!!! Not $1 per gallon.http://www.wtrg.com/daily/heatingoilprice.html
Thoughts?
Tnanks in advance,
Alex