On the contrary I would actually consider it an extremely low risk trade.
Unless ME1 goes into administration, you are pretty much guaranteed to get out for breakeven, even if it takes a while.
And the leverage is brilliant. EG buy 5 mill ME1OD cost = $5k
Sell them at .2, profit = $5k. 100% return on capital employed. Most people would be very happy with that kind of return in a year. So just to make a point, even if it took a year to get out at .2 it would still be a worthy use of capital.
Let's compare to another trade. EG MAY, buy 1mill @ 11c cost = $110k
Sell them at 11.5c, profit = $5k.
Still a great trade but much higher risk and much smaller % return compared to capital used.
Also much higher risk because if price moves against you rapidly you may have to stop out at 10.5, loss = $5k
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- Day Trading Arvo July 13
On the contrary I would actually consider it an extremely low...
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