Shorting the dow ave.?

Question

In mid. march or so when the dow was around 12,500, I predicted by the end of july it would be below 10,000. If i would have put 5,000 dollars down on that prediction through a broker and lets say the dow is at 9,500 on aug 1st, what would i have made?

Answer 1

Selling the dow futures it depends.

There are 3 dow future contracts you can trade.

The Mini $5.00 Dow

The Mini $10.00 Dow

The Full Size 25.00 Dow.

With only 5,000 you would have most likely sold the dow $5.00

For every 100 points the dow moves you make $500.00

12,500-11,200=1300 Points X 5.00=$6500.00

Answer 2

It is too late.

Answer 3

doesn't matter you didn't do it.