1 April 2009

 

Another successful short trade this session. This one took a little longer to materialize; I was in the market for nearly 50 minutes.

A couple of people have emailed asking me to explain the numbers on the graphic.  The blue figure at the top shows the P&L for the day in US dollars.  I was short one contract on this trade which made exactly 4 points profit, $200, less $6.10 brokerage costs – $193.90 net.

The net liquidation value is the Australian dollar value of the account.  (As explained in an earlier post, IB hold the account capital in two sub-accounts, one in AUD and one in USD. All profits and losses are held in the USD sub-account unless I explicitly convert them back to AUD.  As I only do this every few months, the overall Australian balance varies during each day as the exchange rate changes.)

We are now in the area I discussed in yesterday’s post.  The account balance is sufficient to take two contracts on some trades, which means that I will need to overcome the asymmetric effect to make further progress.

 

Comments are closed.