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Search: Posts Made By: Fat Tails
Forum: Emini and Emicro Index September 27th, 2010, 02:33 PM
Replies: 16
Views: 7,443
Posted By Fat Tails
Here is a document that explains how the indices...

Here is a document that explains how the indices are built and maintained. the S&P 500 is based on market capitalization with a daily readjustment. Details in the booklet below.

The main point:...
Forum: Emini and Emicro Index September 27th, 2010, 12:42 PM
Replies: 16
Views: 7,443
Posted By Fat Tails
Sorry, I did not get your question in the...

Sorry, I did not get your question in the beginning. The index cannot be traded at all, so the arb would buy/sell futures contracts and sell/buy the underlying, if the differential exceeds the fair...
Forum: Emini and Emicro Index September 27th, 2010, 12:26 PM
Replies: 16
Views: 7,443
Posted By Fat Tails
You do not need to update the index. What matters...

You do not need to update the index. What matters is the fair value of the futures contract. You can calculate it from the underlying by first applying the index formula, then adding interest at the...
Forum: Emini and Emicro Index September 27th, 2010, 10:58 AM
Replies: 16
Views: 7,443
Posted By Fat Tails
This is really funny: The Germans use the...

This is really funny:

The Germans use the French word Arbitrageur (trading is immoral, better use a foreign word)
The French use the word arbitragiste (in France you are fined, if you use a...
Forum: Emini and Emicro Index September 27th, 2010, 10:13 AM
Replies: 16
Views: 7,443
Posted By Fat Tails
The underlying assets are also traded by...

The underlying assets are also traded by speculators and investors. So you have speculators and investors trading the assets, the index futures, the currencies and the bond markets. Then there are...
Forum: Emini and Emicro Index September 27th, 2010, 09:41 AM
Replies: 16
Views: 7,443
Posted By Fat Tails
It is you : if you sell it short, it will tick...

It is you : if you sell it short, it will tick up, and if you buy it, it will tick down

If I try a serious answer: It is driven by the decisions of the investors. All of them have different...
Showing results 1 to 6 of 6

What unexpected challenges have you encountered while trading on a "Funded Trader" platform?

 


 
 


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