russell,
One SP500 contract will produce 25K with 50.00 points. A move, for example, from 992.50 to 993.50 is $500.00 or $500.00 for each 1.00 point move. When the SP500 cash is trading at exactly 1,000.00 the underlying cash index is valued at exactly $500,000.00 worth of stock in U.S. currency. The 500 in the index's name is, of course, the number of companies factored into the index, not the dollar amount. If I get a more solid buy signal, I'll buy more aggresively.
For the 30 year bond contracts, a move of one full point, or 32 32nds, is equal to $1,000.00 so a move from 128 even to 129 even is a $1,000.00 move. Each contract represents $100,000.00 cash bond for delivery. I trade these bonds a few at a time since the moves are not generally that big. I'm short three contracts from last week at about 132 in the December futures. If I get a more solid sell signal, I'll short more for the move down.
GZ |
