If I am placing large $ amounts relative to the potential payoffs, how will this influence my taxes at the end of the year?
- 30$/30$ hedge to gain potential 40$. I am spending 60$ to gain 40$.
- 40$/40$ hedge to gain potential 20$. I am spending 80$ to gain 20$.
Because from Nadex I receive a “payment” of 100$, does this mean that I am taxed on “100$” amount?
Also what if I made a 1000$ in a year… but I lost it all before the end of the year? I assume taxes apply to all profits (I also understand there are different tax rates, but for now, I’m curious about when profits are simply taxed)