WSEX interactives question

Mr.Smith · Apr 12, 2006

how does the sell part work?

for instance if Boston is listed at sell 40 and buy 45 and I want to short boston so I bet 1 contract sell at 40...what am I risking and what would I win?

100KbyXMAS · Apr 12, 2006

Mr. Smith said:
how does the sell part work?

for instance if Boston is listed at sell 40 and buy 45 and I want to short boston so I bet 1 contract sell at 40...what am I risking and what would I win?

You are risking $60 to win $40, assuming you don't make any more trades.

royalfan · Apr 12, 2006

That is correct, the 40 you take in to your account by selling is yours to keep if Boston doesn't win. If they do win you have to buy the contract for 100 but you still keep the 40 so you lose a net of 60.

KennyB · Apr 12, 2006

You have to have enough money in your account to cover $60 in losses for each contract you want to short.

I love the interactives futures market. I buy enough contracts to sell and each round of the playoffs my team wins I sell some contracts. It allows you to hedge much easier.