Topsteptrader

[speedo]

Who in the world would trade a 100k contract with $400 ?

 

[Overnight]

Who in the world would trade a 100k contract with $400 ?

People who use leverage?

 

[speedo]

People who use leverage?

Not for long

 

[Overnight]

Not for long

Hmm. Define a $100K contract.

 

[speedo]

Hmm. Define a $100K contract.

ES as an example

 

[Overnight]

Mmm, yes, it is 50x the underlying value of the S&P500, which is about 2275.x at this time? So the "notional value" of an ES contract is about $122K. What is wrong with trading it?

 

[speedo]

Worth 50x contract price so to trade one contract without leverage would take a little over 100k

 

[speedo]

Mmm, yes, it is 50x the underlying value of the S&P500, which is about 2275.x at this time? So the "notional value" of an ES contract is about $122K. What is wrong with trading it?

It has to be explained to you ?

 

[Overnight]

It has to be explained to you ?

Yes. Please explain how it can all go horribly wrong, assuming we know nothing about options or whatever. ES is a future, not an option. An option on that future may be what you are alluding to. Not sure though.

 

[speedo]

not referring to options. With 400 and a breakeven trade you are out of trust to trade another. With 800 trading two contracts, one loss and you have the ability to trade only one...in short no room to succeed. Is it possible? Sure but highly unlikely.