how does bamdex work ? I'll assume you mean how do the contracts work, rather than how did JP program the site. The explanation has already been made in earlier messages. Please read the archives of this list, or read the BAMDEX.COM site itself. is it legal ? Of course it is legal. It is a mutually agreed contract between the two individuals on the UP and DOWN sides of the BAMDEX (e-gold derivative) contract. This is legal, according to Contract Law! All of the details are clearly spelled out, making no deception as to the nature of the contract or the potential for gain or loss. can you give me an example of how i would lose money or how i win money ? I'll give you an example of how I have lost over 2 grams of e-gold on a contract. I purchased an UP contract, having deposited just over 5 grams for margin. An undisclosed BAMDEX member bought the opposite side of the contract (in all likelihood JPM, but he need not reveal his identity!). The price of gold on the e-gold site went down by an amount that added more than two grams to the amount of e-gold that USD$1000 would buy. This decreased the value of my UP contract by precisely that amount, and increased the value of the other party's BAMDEX contract. The other party closed the contract, taking his (or her) profit, and causing me to realise my own loss! In hindsight I would have been better to simply use it to hedge against the (dollar) value of my e-gold account going down (ie. to buy a DOWN contract), at least when the price went down the BAMDEX contract would have OFFSET the drop in value of my e-gold account, rather than what happened, which is the loss in my BAMDEX account ADDED to the loss (in dollars) in my e-gold account! This (hedging) is all explained elsewhere. If you simply want to learn currency futures trading (very unfortunately not in gold vs USD$), a magnificent website I have found is http://fxtrade.oanda.com/ which allows real trading in cross-currency futures (with high volume markets and realtime per second pricing and interest payment), and which fortunately for me, allows a 'game' account to be used while you learn how to do it. The only disappointment, that the futures do not include metals futures in addition to currencies. (This would have at least enabled me to better pick the direction (and value) of the expected movement in the e-gold price!) Ian Green http://two-cents-worth.com/?107242 > -----Original Message----- > From: kane [mailto:[EMAIL PROTECTED]] > Sent: Monday, 16 July 2001 4:29 AM > To: e-gold Discussion > Subject: [e-gold-list] Re: bamdex volume / next, the S&P or Nasdaq > contract > > > how does bamdex work ? > > is it legal ? > > can you give me an example of how i would lose money or how i win money ? > > thanks > <SNIP> --- You are currently subscribed to e-gold-list as: [email protected] To unsubscribe send a blank email to [EMAIL PROTECTED]
