[00:02] day, the mini-index (WIN) or the mini- dollar (WDO)? These two contracts are the most traded by traders here on the B3 (Brazilian Stock Exchange), and many people end up which is more volatile, which system fits better – the mini-index or
[00:17] the mini-dollar? Today I'm going to tell you the differences between the contracts, what you need to pay attention to, their value, and how to trade them so that everyone can be consistent and profit trading mini-index or mini-dollar. They
[00:29] have different behaviors, but after you understand all the content of this easier for you to trade. Okay, everyone, welcome! Hey guys, your like, subscribe to this channel, and at the end, if it's relevant, I'll ask you
[00:43] friends. Today I'm going to show you the main differences between the mini-index and mini-dollar contracts. Just so you understand, at its core, the mini- index will reflect the Bovespa index, meaning it will be linked to the
[00:58] behavior of the stocks.  Okay, so the mini-dollar on the other hand the mini-dollar on the other hand is tied to the dollar-to-real exchange rate, which is the difference between the two currencies. Every time you want
[01:10] need to compare it to another currency: the dollar against the Euro, the dollar against the Yuan. In this case, in Brazil, which is our currency. So when you say that to buy 1 dollar you
[01:25] need R$5, that's exactly the parity difference. Okay, so PR is for us to understand. The abbreviation for both is Win, and WDO, which we put there
[01:38] to abbreviate and facilitate our operations. Basically, the operational margin for a mini- index contract that the brokerage and B3 require is R$1,100. An operational margin for the mini-dollar is R$50. This is what
[01:55] you need to have deposited to operate a contract, either a mini-index or a mini- dollar. Okay, the big question is the financial value of a mini-index contract, which is the value you will work with and trade on the stock exchange. It's
[02:10] approximately R$  2. Depending on the asset's price, you'll basically deposit R$1 into your brokerage account and trade something close to R$ 20,000. This effect is called leverage, which
[02:24] allows traders to profit by operating with little capital. The same relationship applies to dollar contracts. To trade a dollar contract, remember I told you that you need R$50? You'll trade the equivalent of R$
[02:37] you need R$50? You'll trade the equivalent of R$ 10,000, which at today's exchange rate would be close to R$55,000. So you'll see that the dollar contract is much more leveraged than the
[02:51] index contract itself; it's double, a little more, right? Because $1,000, if you convert it to reais, becomes R$55,000, depending on the day's price. So yes, the dollar contract has a more significant value, like
[03:06] a mini-index contract, which will fluctuate by 0.20 cents per point. But that's the minimum fluctuation of the mini-index.  The index moves in increments of five points, so what
[03:20] happens is that every five points you 'll have a minimum fluctuation in reais of 'll have a minimum fluctuation in reais of R$1. So if the index goes up 100 points, you'll take 100
[03:42] point factor of 20, or you can take 100 points and divide by 5, which is its factor. If you arrive at either of these two calculations, you 'll arrive at a value of R$20 for every 100
[03:54] points. This is the movement of the mini-index. So every time you see a movement of 100 points my computer screen), you can expect a profit or loss of R$20. 200 points, a profit or loss of R$40. The
[04:09] dollar, however, has a different leverage. WDO contracts fluctuate every half point, and each half point in half point, and each half point in the dollar contract is worth R$
[04:23] 5. So if I have a dollar quote of dollar quote of 499.5 to 4... 499.5 to 4... 200 here, in this difference I have R$5,
[04:39] right? So basically, if I have a dollar that goes from dollar that goes from 4190 to 4E2, what will happen here is a difference of 10 points, right? Remember I told
[04:53] you that it oscillates every half point? R$ 5, if it oscillates every half point, 5, if it oscillates every half point,
[05:05] every point it oscillates. So what? R$10, right? If you take R$10 multiplied by 10 oscillation I wrote for you, from 490 to 4200. The dollar would bring a
[05:17] from 490 to 4200. The dollar would bring a financial value of R$100, right? While the mini-index, to move 100 points, will bring you a financial value of R$20. Okay, let me write it down here so you know: the WIN, when it brings a
[05:29] movement of 100 points, this is equivalent points, this is equivalent to R$2, right? While the WDO dollar, when it makes a movement of 10 points, is equivalent to R$1. You can see the
[05:47] difference in the contract, right? By the leverage value, of course, the index is much more volatile.  Of course, the index offers many more opportunities during the day, as I'll show you on my computer screen right now. I have
[06:00] two completely different trading strategies here, totally distinct from this compare them here, you'd say, "Ah, Paulinho, you earned R$5,290 trading the index." Yes, but there's another strategy I did with the dollar, which is based on the
[06:14] video description if you want to learn it. It's a free live event. I made R$ 560 because, in the formula, our goal is to make R$500 per day on average. So I use the same strategy, but
[06:28] here with the dollar, I worked today to make that R$560 with much less leverage than with the index. Well, if you look here, a mini-index contract is worth R$ 26.63 at the current exchange rate, and a
[06:40] 26.63 at the current exchange rate, and a mini-dollar contract is R$5.140. The big issue is that in this case, in this strategy, I used many more index contracts. I many more index contracts. I had 50 mini-index contracts, and for the
[06:52] dollar, to achieve that result, I used seven contracts.  What leverage there? I would need R$50 for each mini-contract, based on the broker's margins. It 's perfectly possible, as shown on the screen, for you to do. The
[07:06] the difference in behavior. The index is much more volatile. If you look at today's data, it opened, hit a high, came almost to the low again, then broke through the high, came almost to the low again,
[07:19] oscillated, and closed near the opening price. You see a percentage variation opening price. You see a percentage variation of 0.8, right? In contrast, the dollar another direction. What do you learn from this? The best
[07:33] operating system to use with the dollar is to capture large trend movements. Trend doesn't mean you should buy the top, for God's sake, it doesn't mean you should buy the top. Trend means you should capture a large,
[07:47] wide movement throughout the day. While the mini-index will offer you more volatile operations, which means you'll enter and exit more often because it will be moving. The volatility, even with the chart standing still, is
[08:02] when markets are volatile, it really messes with your head. So, working with long-term targets on the index is sometimes a bit more difficult than with the dollar because the dollar is more stable; it's more of a
[08:16] trend follower and will bring you more stability. So, when choosing your trading strategy for both the index and the dollar, you need to keep this in mind. The dollar respects the points more; it stops, it
[08:29] respects the variations of the index. For example, the dollar rose 0.90% today. And there's something very dangerous that you need to pay understand anything about trading who teach this out there, saying, "Oh, when one goes up, the
[08:43] other goes down." That's not true. I've had some tough times when I was learning because they told me that when the index goes up, the dollar has to fall. Don't do that; they are completely different assets. The truth is,
[08:56] most of the time they will behave in and the index falling. There are macroeconomic explanations for this, but it's not a rule. Many people end up getting
[09:08] screwed believing it.  This is a rule and it's considered frequent until a fateful day arrives, which won't happen because they are different assets. One will relate to the main actions of Brazil in the future, the other will deal with currency exchange rates; they have
[09:23] do this, you're putting your money at risk. Remember leverage, and remember that one is more volatile and the other is more trend-following. You can capture more points, besides being more leveraged. That's it.
[09:36] points, besides being more leveraged. That's it. the points of variation in the index. My operational strategy fits better most of the time in dollar operations, however, the index appears to me as
[09:49] fewer opportunities but very strong opportunities because the volatility there is very high. So most of the time I'm trading the dollar, but paying attention to the index, I trade there less, but whenever it appears I make some
[10:01] very good moves. That's it. I hope you enjoyed it. Share this that friend of yours who's stubbornly doing it the wrong way so he can learn, and put some good tips for trading these
[10:14] two assets there. That's it. Thanks a lot, I'm going to stop here. Bye.