During expiration week, when the gamma of an option is growing and suggesting an options position's delta is becoming less stable, some traders may choose to close the position. Here, the position's delta can change so dramatically when gamma is high that a relatively small change in the st...
How to trade futures on thinkorswim To trade futures on the thinkorswim®, select theTradetab, thenFuturesTrader. Several dashboards and charts appear. In the symbol box, enter a symbol, such as /MESfor Micro E-mini S&P futures. The quote box displays the bid (sell) and ask (buy) pr...
When the percentage of trades or traders in one position reaches an extreme level, sentiment indicators become very useful. Assume that our aforementioned currency pair continues to rise, and eventually, 90 of the 100 traders are long (10 are short). That means that there are very few traders...
Use a demo account: It’s not wise to jump into the Forex trading world and start using the money from your account immediately. Again, many online forex brokers give you an option to create a fully functional demo account that you can trade with without the need to make a deposit. That...
While Investopedia offers one of the best options on the market, it is not the only paper-trading platform. Charles Schwab offers Thinkorswim, and the SIFMA Foundation offers The Stock Market Game. What Does Paper Trading Mean? A simulated stock trading platform is a paper trading platform. A...
10. Thinkorswim – Auto send on / off In Thinkorswim, the Alt + A keyboard shortcut turns the auto-send feature on or off. The auto-send feature allows you to automatically send orders to the market based on predefined conditions. With the Alt + A shortcut, you can quickly turn the ...
In theory, that means there's no upper limit to the dollar amount needed to replace the borrowed shares. It also means there's no guarantee the broker can continue to maintain a short position for any period of time and may close out the position without regard for loss or profit. ...
Hedging: For more advanced traders, this involves investing in a position to offset the risks they're taking with another trade should the price not move as you expect. It's suited to more advanced traders. You could buy aput optionto protect against a potential decline in the price if yo...
Suppose a trader holds a stock position or a portfolio of stocks with a value of $50,000 that has a high correlation to the S&P 500 index, and they're concerned about the prospect of negative surprises in upcoming economic reports or earnings season. The trader could hedge about 60% of ...
Profit/Loss (P/L) Day is the amount of money made or lost on your position from last night's close to the current mark, plus any intraday profit and loss. You can see the current price for any stock or option in your position on the Position Statement. P/L Open is the amount of...