Welcome to Options Trading Guide
Learning Options Trading Article
This is a selection made from among articles on Learning Options Trading. For a permanent link to this article, or to bookmark it for future reading, click here.
Futures Options Trading
from:
Futures trading is a risky business. It is a financial gamble. And, like any gamble, you will never know when you will win and when you will lose. The key is simply to play the game based on the cards you are dealt with, what you know about the market so far and hope for the best.
Many traders are lured into futures trading because of the great rewards it can potentially bring. However, you must keep in mind the rule of opposites, in that with great rewards, also come great downfalls. Futures trading, because you're gambling with something that is yet to happen, is nowhere near accurate.
This can also happen when you're dealing with options, because, the value of underlying options are basically placed against futures contracts. When you acquire options, more likely than not you will get them at a discounted rate based on the price of the product at the time they were issued.
Options may be exercised at a given time in the future and at the rate at which they were issued, but the holders stand to gain or lose depending on the value of the options at the given future date. Thus, when you really look into the nature of futures and options, they are very similar and related.
Some tips when entering the options/futures market:
The market is unpredictable.
No matter what experts say or predict will happen to the market months or years from now, nobody will be able to make perfect forecasts. Therefore, if you're planning to invest your hard-earned money into financial trades, do not put all your eggs in one basket.
While it is possible that you will make a fortune out of this risk, it is also likely that it will be the one that will send you to the poorhouse. Tread carefully.
Trading options and futures requires research on your part
Futures trading involves 4 investment categories: namely, speculation, growth, inflation hedges and income. Without adequate knowledge of these four, you won't be able to move freely in the trading market and might even cause yourself to lose.
Do not simply rely on somebody else to do the research and understanding for you. Being able to make intelligent decisions, no matter how inaccurate, will sometimes make the difference between a win and a loss.
You should invest no more than 10% of your net on futures.
Futures trading should not be your first foray into financial trading because it involves a considerable investment. You should only do it when you're confident that you have enough knowledge and that your other investments are working out for you.
Learning Options Trading News
2 Lessons For Investors To Learn (Over And Over Again) - Seeking Alpha
2 Lessons For Investors To Learn (Over And Over Again) Seeking Alpha While it might be tempting to break these rules just to see how it feels, you're probably best off simply learning from somebody else's mistakes. Do Not Buy Out-Of-The-Money Options. Yes, I am a hypocrite. No doubt. I own NFLX June $40 put options and ... |
Notable Call Options Activity in LeapFrog Enterprises - Benzinga
Notable Call Options Activity in LeapFrog Enterprises Benzinga The stock has been moving largely higher over the past six weeks and is currently trading above the 50-day moving average. Options traders are focusing on calls today. The strike seeing the heaviest volume is the February 2012 $7.50 call, ... |
So You Want to be a Foreign Exchange Trader - FINS
So You Want to be a Foreign Exchange Trader FINS "It is important to develop a feel for the tone of the market, and the only way to do that is by constantly watching and learning." With $4 trillion traded each day, double that of seven years ago, the foreign exchange, or FX, market is the biggest, ... |
Juechter W Mathew exercises 3428 shares of Learning Tree International Inc ... - MMD Newswire (press release)
Juechter W Mathew exercises 3428 shares of Learning Tree International Inc ... MMD Newswire (press release) Juechter W Mathew has also performed other transactions including exercise of options . Let's take a quick, high-level look at insider trading at Learning Tree International Inc over the past 12 months. A total of 7691 shares of Learning Tree ... |
Microsoft Corporation Stock Option Hedged Dividend Capture - Seeking Alpha
Microsoft Corporation Stock Option Hedged Dividend Capture Seeking Alpha When learning a new trading strategy it is better to use a simulated trading account first. It is easy to make mistakes when starting out on a new strategy and mistakes cost a lot less with a simulated account. After a level of confidence is built, ... |
BATS Exchange Announces Innovative Primary Listings Pricing, Including Free ... - Sacramento Bee
BATS Exchange Announces Innovative Primary Listings Pricing, Including Free ... Sacramento Bee 9, 2012 /PRNewswire/ -- BATS Global Markets, a global operator of stock and options markets, today unveiled a unique flat pricing model for its primary listings business, including free listings for companies whose stock or exchange traded product ... |
Detroit Red Wings Trade Speculation: 6 Reasons to Avoid Trading for Zach Parise - Bleacher Report
 Bleacher Report | Detroit Red Wings Trade Speculation: 6 Reasons to Avoid Trading for Zach Parise Bleacher Report That move my friends, will not be trading for Zach Parise. Here are six reasons why they will not trade for the New Jersey Devils' superstar. At one point this season, the New Jersey Devils were in serious danger of missing the playoffs. |
10 Profit-Maximizing Tips For Beginners In Online Options Trading - OfficialWire (press release)
10 Profit-Maximizing Tips For Beginners In Online Options Trading OfficialWire (press release) Don't neglect the learning process necessary to analyze stocks and the fundamentals that go into why they go up and down. A tendency for beginner options traders is to not be disciplined in their financial education. A bad stock trader is normally also ... |