LONDON July 13, 2011
July 20 Greece Athens
For example, if you expected the FTSE 100 to fall over the coming days, you could open a ‘sell’ position of £10 per point at 5120. This means that for every point by which the FTSE 100 fell, you would make a profit of £10.
Therefore, if the FTSE 100 then fell to 5090/5091 on the back of the Greek debt crisis, you could cash in your gains by buying back £10 per point at 5091 (our buy price) – a profit of £290. If however, the price of the FTSE 100 rose to 5150, you would have lost £360 (5150 -5120 x £10).
About City Index:
SOURCE City Index