Leverage question

Would you guys say that $50k is enough capital to trade at least one mini?

It takes 13k in order to trade one. I’ve only been trading positions half that size, yet have almost ten times as much capital compared to the margin requirements of my positions.

Lol respect! You can also do micro e mini. That’s about 17k. Good luck on futures endeavor. Don’t blow up. Make sure you put enough margin. The worst thing people do is they try to max it out. And when it moves against them and are forced to sell, they miss out on the uptrend.

I’m going to guess no if you have to ask. But I don’t know what a mini is :slight_smile:

typically how it works is this. a micro e mini contract has a 17k size, varies depending on price of S&p 500 times 5. thats the size of his exposure. when you buy that contract, you dont have to put the entire 17k down. depending on the margin requirement for brokerage it can vary between 3% to 30% down payment. the lower the down payment, the fast you will blow up and get a margin call. so you can essentially have a leverage of 3x to 30x.
the e mini used to be the standard, but because S&P 500 rose so much, they created the micro so poorer people can speculate, but its essentially same thing. if you did e mini your exposure would be 170k. its about 10x the size.
ive never traded it. but the places if you wanted to trade it via a regular brokerage, td ameritrade and interactive allows you to.

Haha he knows what e-minis are.

you do know you are buyign these bad boys near a market top.

You do know that statistically the market is always near a top? :slight_smile:


true. lol im just a ■■■■■.

It literally isn’t hard to see. Stocks rise more than they fall. Is basically my investment thesis… and I’m making more in my account than most professional PM’s who want to complicate things with words like “beta”, “price to sales” etc etc…

I made some pretty good cash today, and I didn’t have to think for two seconds about investing.

not only do stocks rise more than they fall time-wise they also rise by a larger amount than they fall


True but the issue with futures contract is leverage. Too much leverage can force you to sell at the worst possible time. Leverage makes you more sensitive to volatility. Essentially the more leverage you apply, the more you sure you’ll need to be that the trend won’t go against you!
Market is sus.

I’m only levered 5x though.

keep compounding those index funds

1 Like

How much would the market need to fall to wipe you out?
Now let’s say it goes your way and spy goes up by 10 percent. What is your return going to look like once you delever, sell and pay taxes? Short term taxes? Long term taxes?
Holding forever is key! Avoiding taxes is key. Maga!

1 Like

Rule of thumb: if you don’t wake up in cold sweat to your own scream in the middle of the night, you do not have enough leverage.


This eerily reminds me of your USD shorts last spring, which were great until they weren’t.

I was actually buying the dollar!

It’s gonna take close to an 800 point drop to wipe me out. Which is probably pretty tail risk as it gets in this climate. So why bother? Lever up or shut up.

And screw taxes. I can afford to pay them. This is just supplemental to my income from work.

of course you can afford the taxes. but just keep in mind depending on your tax rate, they can go as high as 55% of the gain. so what you thought was a 50% gain, would really be 22%.