how do contracts work please

[cooltrader1]

Hi all I need some help please I am spread betting at the moment and want to change to do futures with someone like infinity futures but I am not sure how the contracts work.

If I do the dax and want to buy 1 contract how much would it cost me and if I went long on the dax at 4600 and it went to 4612 that’s 12 points up how much would I end up with.

Because I am reading a book at the moment and in it a investor goes long in the FTSE 100 and bought 100 contracts at 6010 and he sells at 6050 at £10 per index point £10 x 40 index points x 100 contacts = £40,000 but with the spread betting £10 a point x 40 points is just £400 take away the spread and how much would the 100 contracts have cost him.

 

[rawrschach]

I'm not sure what the margin requirements are for Dax; tick value is €25.

The math in your example is wrong - it would be 100(lots) x £10/tick x 40 points (so you are betting £1000/tick), which would give the same result.

 

[KillPhil08]

lul

 

[Magos]

nice calculation

 

[cooltrader1]

nice calculation

Nice calculation to who? me cooltrader1 or choc13 as both are just the same and give the same result just a different way round

Cooltrader1 £10 x 40 index points x 100 lots = £40,000
Choc13 100 lots x £10 x 40 index points = £40,000

Just need to know about the contracts or lots as I have been doing spread betting so if I get in to a trade what can I lose so if I went long on the dax with 3 lots and it went down 10 points how much money would I lose?, is it just £10 x 10 points x 3 lots = £300 down and does that just come out of your margin which would be ???????

 

[KillPhil08]

You are betting the stake x point in most cases. There are no contracts as far as i'm concerned.

Hence if you bet £10 per point and it shifted 10 points. You will make £100.

 

[KillPhil08]

PS.

Is this a windup?

 

[arabianights]

No because the dax is 25 euros a full fat tick so you would lose 250 euros.

 

[cooltrader1]

PS.

Is this a windup?

Hi sorry but new to all this I am not talking about spread betting or cfd’s. infinity futures are an Independent brokerage and investment firm and I don’t think it all works the same as spread betting or cfd’s when you trade with them I think you have to put a margin down and you trade in lots or contracts.

The book I have got is introduction to global markets and in the futures section it states the below example;

An investor is long in the FTSE 100 contracts, having bought 100 contracts. The futures rise from 6010 to 6050.

The investor gains from the rise in the futures price. The total gain, at £10 per index point is

£10 x 40 index points x 100 contracts = £40,000

Please can someone advise on the above, does this just relate to someone trading for a large investment company and not from home???……what are the trading options for me on futures from home??

 

[dcraig1]

Hi sorry but new to all this I am not talking about spread betting or cfd’s. infinity futures are an Independent brokerage and investment firm and I don’t think it all works the same as spread betting or cfd’s when you trade with them I think you have to put a margin down and you trade in lots or contracts.

The book I have got is introduction to global markets and in the futures section it states the below example;

An investor is long in the FTSE 100 contracts, having bought 100 contracts. The futures rise from 6010 to 6050.

The investor gains from the rise in the futures price. The total gain, at £10 per index point is

£10 x 40 index points x 100 contracts = £40,000

Please can someone advise on the above, does this just relate to someone trading for a large investment company and not from home???……what are the trading options for me on futures from home??

This applies to everybody who trades the contract on the excahnge. You can't divide a contract into fractions. The minimum you can trade is one contract:

£10 x 40 index points x 1 contracts = £400

A tick is the minimum price change on a contract eg:

0.5 pt on Dax
0.25 pt on ES
1 pt on YM

A point is err .... a point.

DAX: 25 euros per point
ES: 50 dollars per point
YM: 5 dollars per point

 

[Dinos]

Hi sorry but new to all this I am not talking about spread betting or cfd’s. infinity futures are an Independent brokerage and investment firm and I don’t think it all works the same as spread betting or cfd’s when you trade with them I think you have to put a margin down and you trade in lots or contracts.

The book I have got is introduction to global markets and in the futures section it states the below example;

An investor is long in the FTSE 100 contracts, having bought 100 contracts. The futures rise from 6010 to 6050.

The investor gains from the rise in the futures price. The total gain, at £10 per index point is

£10 x 40 index points x 100 contracts = £40,000

Please can someone advise on the above, does this just relate to someone trading for a large investment company and not from home???……what are the trading options for me on futures from home??

It really is very simple, I use Saxobank where:- 1 (ftse) futures contract is £10 value per index point, 10 (ftse) futures contract is £100 value per index point, no more difficult than that to understand.

Whichever provider you use, it will explain the contract value in the order tickets, simply work it out.

As to how many contracts you can have is not determined whether you are a large corporate organisation or private trader, it is determined by the amount funds you have deposited. If you want to take a ftse futs contract the Saxo margin requirement is £5000 per contract, simply maths again, if you are wanting to take 10 lots, a margin of £50,000 is required, hence you will need a fairly hefty pot to trade at those levels

 

[cooltrader1]

It really is very simple, I use Saxobank where:- 1 (ftse) futures contract is £10 value per index point, 10 (ftse) futures contract is £100 value per index point, no more difficult than that to understand.

Whichever provider you use, it will explain the contract value in the order tickets, simply work it out.

As to how many contracts you can have is not determined whether you are a large corporate organisation or private trader, it is determined by the amount funds you have deposited. If you want to take a ftse futs contract the Saxo margin requirement is £5000 per contract, simply maths again, if you are wanting to take 10 lots, a margin of £50,000 is required, hence you will need a fairly hefty pot to trade at those levels

THANKS FOR THAT SORRY BUT JUST NEW TO ALL THIS AND HAVE ONLY BEEN SPREAD BETTING

 

[Dinos]

THANKS FOR THAT SORRY BUT JUST NEW TO ALL THIS AND HAVE ONLY BEEN SPREAD BETTING

Don't apologise, we were all new at some stage, good luck