Have you ever lost everything in your options trading account?
The fact is, options trading is a risky business! There is always the chance that your options will expire worthless, losing all of your investment. But, at least when you are buying options as opposed to selling, your potential loss is limited - so you can [...]
Vertical spreads will trade between its minimum and maximum values – zero and the difference between the two strikes. In the case of a vertical call spread, the spread will trade closer to zero when the stock trades closer to or lower than the lower strike price. The spread will trade closer to maximum value [...]
Who would turn down the opportunity to buy stock at half price? Especially when the potential for gain is exactly the same, and the potential for loss is halved. This is exactly the benefit of trading DITM (Deep-in-the-Money) options. By purchasing an option as a proxy for a stock, but at about half the price, [...]
Nowadays, everyone seems to be into trading. Regardless of age, occupation or country, we have learned the basics of stock trading and we are constantly looking for professional trading platforms. Did you consider opening an account at Zecco? You might be impressed with what this company has to offer!If other companies require complex forms or [...]
Derivatives of the Forex trading system are spot trading, futures trading, forwards trading, options trading and swap trades. Many inexperienced Forex traders tend to focus on spot trading. Spot transactions are over-the-counter transactions, handled outside of an organized exchange.
Spot Trading – Spot trading in the Forex trading system is what is termed Forex. A Forex [...]
Professional traders use the term lean to refer to one’s perception about the directional strength of the stock. When you own a stock and intend to hold it for a period of time, you are aware that you will probably be holding it while it goes up and while it goes down.
This means that at [...]
Many traders love the idea of currency options, they have unlimited gains and limited risk sounds great in theory, but in practice 90% expire worthless!
This article is all about how the pros use currency options to generate big consistent gains and how the losing majority don’t understand the odds of success.
This article will give [...]
When purchasing a time spread, the investor should pay attention to not only the movement of the stock price, but also the movement of volatility. It plays a very large roll in the price of a time spread, which is an excellent way to take advantage of anticipated volatility movements in a hedged fashion.
Option Volatility
Since [...]
Time spreads, also known as calendar spreads, are an ideal way to take advantage of time decay and changes in implied volatility. Time spread strategy focuses on the movement of time and volatility more than on the movement of the stock. Therefore, it is perfect for when you anticipate stagnant or explosive periods in a [...]
The Greeks have long been extolled for their extensive contributions to establishing elementary mathematics. It was the modern Greeks, however, who created the tools that aid options traders to quantify risk and calculate prices. Among these tools, one that rises above the others are the quantities known as “The Greeks.” They are [...]