Multi Contract Market (Can someone please clarify?)
M
MisterMaster
started a topic
almost 2 years ago
I'm sorry. I still don't understand.
Suppose there is a multi-contract market with two options.
Suppose both are priced at Option 1 50/50 and Option 2 50/50.
Suppose I buy No on both at 50 cents.
Market resolves to Option 1 = Yes and Option 2 = No.
Do I break-even or do I lose 5 cents???
1 Comment
m
mbrubeck
said
almost 2 years ago
You will lose five cents.
Fees are calculated separately for every contract. You have a $0.50 profit on the winning contract, so you pay a $0.05 fee. The loss on the second contract will not "offset" the profit on the first one, even if they are in the same market.
MisterMaster
I'm sorry. I still don't understand.
Suppose there is a multi-contract market with two options.
Suppose both are priced at Option 1 50/50 and Option 2 50/50.
Suppose I buy No on both at 50 cents.
Market resolves to Option 1 = Yes and Option 2 = No.
Do I break-even or do I lose 5 cents???