So let’s walk through an example of how you would potentially place a trade on the bond market and how the contact specification works if you’re trading smaller size.
So the video right before that I was just trying to show you what’s possible. I kind of want to open up your mind so you got man, that’s a lot of money, I wish I could potentially do that.
Everybody is going to start out one contract. So in this example it’s just going to be one lot. One lot we’re going to say we think it’s going lower and you could do it.
You could bid whatever you wanted to or you could just say sell the market and there you’re now short. Now, it may or may not work in this example but this is how it will look when you’re trading these things in a real live market environment.
So as you can see the short would be at $160 4/32. The risk that you would be taking on this example would be $156.25 and a potential target would be down here at a thousand.
Now, what I like to do is remove the target and just cancel that order. So if this thing starts to run I won’t just make a thousand dollars.
I want to have unlimited profit potential and I want to limit my risk to the down side. That’s how that stuff works.
Steven Brooks is doing a special webinar on ”How to Win on Up to 82.46% of Your Trades by Following a Trading GPS” I’m going to HYPERLINK you to the registration. I believe this webinar takes place Tuesday at 7PM EST.
Good luck. Hope it helps. I’ll HYPERLINK you to the registration page.
Hubert.
