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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: GROUND ZERO™ who wrote (5709)4/12/2005 3:55:21 PM
From: Kirk ©  Read Replies (2) of 12411
 
Out of curiosity
what is the cost of getting stopped out flat?

Short at 1180 and you stopped at 1180...
$10,000 worth of SPY for $10 is 0.1% each way.

Day trade 200 ins and outs (100 round trips) for flatness and you are seeing:

200 x 0.1% = 20% headwind to overcome.

What do you do, increase it to $100K via futures and then the headwind reduces to 2%? (assuming you can do a round trip for $20)
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