Commit 083105

2025-06-12 16:28:57 Viraj Alankar: -/-
finance/investing.md ..
@@ 37,7 37,7 @@
| ----------------------- | ---------------------------- | ---------------------------------------------------------------------------------------- |
| US Small Cap | SCHA, VB, IWM | /M2K, /RTY |
| US Large Cap | SCHX, SPLG, VOO, VV | /MES, /ES |
- | US Bonds | BND, SCHO, SCHR, SCHZ, SWAGX | /10Y (inversely correlated) |
+ | US Bonds | BND, SCHO, SCHR, SCHZ, SWAGX | /10Y ([inversely correlated](##representing-bonds-with-futures)) |
| International Developed | SCHF, VEA, SWISX | /MFS ([MXEA](https://www.ice.com/products/31196848/MSCI-EAFE-Index-Future)) |
| International Emerging | SCHE, VWO | /MME ([MXEF](https://www.ice.com/products/31196851/MSCI-Emerging-Markets-Index-Futures)) |
@@ 174,7 174,7 @@
1 /MES futures contract has a notional value of 5 * index price. Currently that is $30k. To buy this contract, I am required to set aside $2500 as a good faith deposit for the contract.
- This gives me a notional exposure of $30k in the S&P 500 with a deposit of $2500. The $2500 is only the bare minimum, and it is usually advised to keep 2-5x of cash to handle downswings (see [below](#futures-vs-equities-margin)). So I set aside $10k as a safe amount of cash for this contract. That means I get a notional exposure of $30k at the cost of $10k. That is 3x leverage.
+ This gives me a notional exposure of $30k in the S&P 500 with a deposit of $2500. The $2500 is only the bare minimum, and it is usually advised to keep 2-5x of cash to handle downswings (see [Futures vs equities margin](#futures-vs-equities-margin)). So I set aside $10k as a safe amount of cash for this contract. That means I get a notional exposure of $30k at the cost of $10k. That is 3x leverage.
That $10k needs to come from somewhere. I could sell $10k of equities. That would give an overall leverage of (100-10+30)/100 = 1.2.
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