Real world trading example: short on VOW

mi1esg

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Hi All,

I never used CFDs or SB. But Eurex - Europe's Global Financial Marketplace offers horrible spreads and prices on VOW options on the VOWF futures. the futres are also very dubious 'cos there is no market maker!! I had issues with the lack of quotes and lack of a market maker, so i called the exchange. If there is no one wanting to be the counter party, tough

What about the cost?

I had to handle an initial margin of approximately $ 10,000 for each Volkswagen future. Let's say I want to go short on 1,000 shares and have $ 100,000 risk capital.

The options are way too expensive - no, thank you.

How would SB or CFDs perform versus a December 09at the money future of say $ 380?

a) 13.5 months times the interest on $ 100,000?
b) How many shares would i control with $ 100,000?
c) Anything else?
d) Is there the same issue as with the EUREX SSF (single stock futures), like no market maker? You might have a great position but unless you can close it, what's the point?1?

Thank you for any answers!

Chris
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