Discussion in 'Index Futures' started by esc_trader, Dec 22, 2002.
Are you still trading the S&P/DJIA spread? If so how is it going?
Are you still trading the dow/spy spread?
Nice idea for scalping the indexes, but there is one thing i donÂ´t understand yet.
Lets say at 7/25 ,2:42 PM the spread was 80. This doesnÂ´t mean imho that i get +80 ym points for profit as i have to deduct the loss/profit from the other contract i buy/short from it.
Lets assume at 2:42 PM i shorted es at 994.75 (closing value of 13 min chart) and bought ym at 9226.Then at 4 PM u cover es at 997 and sell ym at 9255.
Profit calc. would be:
=-112.5+145 > net profit (without commissions) : 32.5$
One of the contracts always go against you (whether if u sell the spread or buy it).
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