Indices - Module 4
Managing index risk
Sizing in points and per-point value, overnight gap risk that stops cannot fully cover, and leverage on instruments that move fast around opens. Index positions correlate hard - treat US indices as one exposure until proven otherwise.
9 lessons, about 62 minutes
- 1Risk per trade, in money before points6 min
- 2Sizing: from risk to contracts7 min
- 3Where the stop goes on an index6 min
- 4The gap your stop cannot cover8 min
- 5Sizing for the gap, not the stop7 min
- 6Leverage, and why the open is a different market6 min
- 7Three index positions are usually one exposure7 min
- 8Margin, and the stop-out you did not choose8 min
- 9The index risk plan on one page7 min