Okay, so I think I'm going to use IG markets.. Seems cheaper and easier to use than CMC and better customer service.
I'm wondering though..... Say I want to invest $5,000 to long the Dow Jones.. questions.
1) can you long the dow using IG Markets? It seems like you can only do the S&P 500?
2) Say if you did a 5 dollar contract... does this mean you can buy (5,000/ 5) = 1000 contracts...
3) now it seems like for every point move, if you bought a $5 dollar contract, you gain/ lose 5 dollars. In this case, if you bought 1000 contracts, you would lose all your money if the market fell 5 points - is this correct?
4) If I'm correct and want to protect myself from losing all my money if the down jones dropped 10%, how many contracts should I buy?
All up, I'm still trying to figure out how this works.. so sorry if I'm asking stupid questions. hope someone can understand what I'm getting at and help me out.
