A strategy with which to get into shorts. Usually before the cut-off, on stocks that can be shorted, JUNE JULY Harvest - page 16
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I was thinking, you don't have to have a single brokerage account. Just in case, the futures account should hold an amount of money that can fully pay for the number of contracts traded. Then you do not need to pay attention to SE and if after selling futures price will rise and exchange suddenly increases SE, the broker will not close position with margin call because there will be enough money in the account to sit up to expiration.
Ebs reduces the value of the futures to 10% (if the shares are covered).
The EBS reduces the value of the futures to 10% (if the shares are covered).
Consequently, without an EBS, the yield will be lower. And the risks are greater.
Ebs reduces the value of the futures to 10% (if the shares are covered).
It is not the value of the futures that decreases. Its value remains unchanged, only the GO is reduced. When you buy/sell a futures, you don't take its full value (like for equities), but only a certain percentage (usually 20%), which creates a leverage effect. If you hold to expiration (for example an in-the-money futures) then at the time of expiration you will be charged the full price. But if you load the account to the full, for example selling futures, and the price rises, variation margin changes every day and it can happen that the account goes in the red. This will not happen in EBS only because the share price changes too and all this is accounted for in one account. It means that profit on shares will compensate losses on futures. If there is no UBS, accounting will be on different accounts, and it will be negative on one account and positive on the other. And on the negative account, the position can be closed on margin call.
Consequently, without an EBS, the returns will be lower. And the risks are greater.
The yield will be the same, only the leverage effect will not be used, because you will have to keep some of the money in the futures account unused. In other words, if there is no EBS, you have to calculate the position as if you have CS = 100%.
The return will be the same, only the leverage effect will not be used, because you have to keep some of the money in the futures account uncommitted. In other words, if there is no EBS, you have to calculate the position as if you have CS = 100%.
That's the point, if you have part of your money uncommitted, it doesn't work. Consequently, the return is less.
Regarding leverage on futures - yes, there is leverage built into the futures. But if you trade on EBS, the CS (as you correctly noted) will only need 10% of its initial size. And, it is also true that the plus on the stock will close the minus on the futures.
In short, you can't go anywhere without EBS. There is a lot of extra work, and there is a risk of a cataclysm and being closed before the time.
That's the point, if you don't use some of the money, it doesn't work. Consequently, the returns are lower.
Regarding leverage in futures - yes, there is leverage in futures. But if you trade on EBS, the CS (as you correctly noted) will only need 10% of its initial size.
What I meant was. Selling 1 contract e.g. magnet and buying 1 share of magnet. Whether you have EBS or not, without taking into account the commission will give the same financial result.
P.S. I just discovered that you can even trade these baskets in QuickBooks. That is, with almost one click you can sell or buy a preconfigured basket of instruments. It is necessary to do the same thing for the metaquotes.
What I meant was. Selling 1 contract e.g. magnet and buying 1 share of magnet. Regardless of whether you have EBS or not, without taking into account the commission will give the same financial result.
P.S. I just discovered that you can even trade these baskets in QuickBooks. That is, with almost one click you can sell or buy a preconfigured basket of instruments. It is necessary to do the same thing for methaquotes.
No one is arguing about the financial result. What I am saying is that more money will be needed for a "bundle" of spot futures without EBS. That's all.
No one is arguing about the financial result. What I am saying is that it will take more money to "bundle" spot futures without an EBS. That's all.
So we just don't understand each other. :)
...
P.S. I bumped the buttons in the basket. It turns out this strategy won't work. You can't put a negative price in the order for the cart. I can only use it to track the chart, and then place orders by hand, or make a robot. Too bad my broker has no MT. I don't have an alternative, I don't see any forex broker with an MT. And I don't think it's wise to experiment on real accounts.
Vitalii Ananev,@Alexey Kozitsyn
The strategy is very simple and is based on expiry
Futures price = (SPOT Price * number of shares in futures) / Number of shares in the SPOT lot = 0
Dividends are a bonus if they are declared unexpectedly and the futures are traded contango.
If the dividends are declared, the future is backwarded, and the profit is calculated with the dividends.
is counted with the dividends.
Contango futures price = price of SPOT + CB rate - this is a rule born out of the fact that
not all investors wanted to "freeze" their funds in the bank for a whole year,
and so the delta (Central Bank rate) of equity derivatives was born.
You can't sell shares and buy futures!