![]() |
Click Here to see the latest posts! Ask any questions related to business / entrepreneurship / money-making / life NO BLATANT ADS PLEASE
Stay up to date! Get email notifications or |
|
|
Thread Tools | Search this Thread | Display Modes |
#13
|
|||
|
|||
![]() Hi,
You wrote: > The amount of return you want will determine > whether you buy before you sell, buy after > you have made the sale or sell without > actually buying. You also wrote: > I do not know how to cover my downside with > Shorting Stock or Trading Futures and this > is why I consider them risky. In chatteling I know you guys trade futures. When you agree to sell someone a black 1991 Cadillac for $5000, to be delivered in two weeks, then take the $5000 and buy a Caddy that fits the description for $4700 and pocket the $300 profit, what you've done is sold a futures contract. You sold something you don't own, and whether you make a profit or not depends on if you can "buy back the contract" for less than you sold it for. In futures trading you win if you either: * Buy Low and Sell High, or * Sell High and Buy Low. Either way is equally good. Best, - Boyd |
Thread Tools | Search this Thread |
Display Modes | |
|
|
Other recent posts on the forum...
Get the report on Harvey Brody's Answers to a Question-Oriented-Person