Silly Billy Selling Question

  • Morning all, newbie question here about selling.

    Obviously we have a portfolio value, it looks like this is based on the current value of all our futures. Therefore when selling we will have a lot less profit then we first thought of, unless we put our sales in queues right?

    Example based on 100 futures in James Justin (my boss is a mad Luton fan)

    I bought at £0.34 so thats an inital cost of £34.00
    Say his current value went up to £1.73 so thats £173.00 value

    Portfolio would suggest a profit of £139 right?

    However his quick sell price is in this example £1.65 so thats £165 less the 2% commission and 1p trade would leave me with £161.69 ???

    £173 - £161.69 = £11.31 diff, quite a big mindset change when your looking at your current pot of cash (portfolio value) and what you actually come out with.

    Obviously there is putting the futures in a queue and waiting to get a penny less than current sales value, but that could take aaaaaaaaaaaaages to get your cash out.

    Sooooo 2 questions.

    1. Is the above way I have worked out selling correct?

    2. What really simple rules of thumb do you work to? Do you for example, have a set profit % you want to reach then quick sell?

    Sorry its such a long winded question and hopefully you have the will to leave a comment to help me unmuddle what I think I have muddled up in my mind...

    Thanks in advance.

  • @Millerman

    Rule of thumb valuation 0.98 times value. When selling you need to ask why? Do you need the money really quickly - for fear of a large price drop as a result of some adverse info such as injury, moving club etc in which case IS might come into play if the sell price is far higher than your risk of the falling price. Also on lower priced players the spread is often only 1-2p so the certainty of an instant sell is preferable to the risk of waiting in the queue & suffering an adverse price movement. However in the vast majority of higher priced players sales situation & almost certainly in the top 20 or so a sell queue will result in a better selling price than IS even if the wait can be a few days.

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