On the other hand, some of the attributes that make futures different from equities also introduce peculiarities to futures options. Here are some considerations traders should pay attention to when trading futures options. Expiration date A futures option is a contract based on another contract (the...
Futures on the Dow Jones Industrial Average (DJIA) moved up 0.43%, while those on the S&P 500 (SPX) inched 0.19% higher, as of 5:52 a.m. EST, Wednesday. Meanwhile, the Nasdaq 100 (NDX) futures moved below the flatline by 0.02%. The regular trading hours of Tuesday remained choppy,...
Expected Return is a mathematical calculation that helps you balance risk, reward, and probability to figure out the expected future outcome of a single trade or a trading system's performance. This formula is simple enough even grade school children can do it. Here it is written in plain eng...
This article will explain what the VIX is and indicate that there is a possibility of trading VIX options. This opens a new window of opportunity to make a profit. The VIX is based on the prices of call and put options on the S&P 500 Index (SPX). It is used globally by a number ...
Not helping matters this morning is the fact that the megabanks on Wall Street are continuing their sharp losses from last week. (See chart below.) As of 9:37 a.m. this morning in New York trading, Citigroup is off by another 7.37 percent while Goldman Sachs has lost ...
Funding is a mechanism used by Bitcoin futures exchanges to achieve balance in the market. When there are more buyers in the market, the funding rate increases. When the funding rate rises, buyers have to compensate short-sellers with a portion of their position. Since buyers have to pay ...
Are quite different. Since shorting stocks or call options will Which one-swing trading strategy can bring high returns with limited to low loss, for a risk averse trader in the Indian stock market? Suppose you buy one SPX call option contract with ...
BSM option pricing model uses , stock price, strike price, interest rate, volatility, and time to maturity to find the value of the call option.It is one of the different pricing models used for pricing options.Answer and Explanation: ...
it represents the largest publicly traded corporations in the U.S. It focuses on the U.S. market's large-cap sector and it's also a float-weighted index which is a type of capitalization weighting. Company market caps are adjusted by the number of shares available for public trading.1 ...
Options and futures based on VIX products are available for trading on CBOE and CFE platforms, respectively. Active traders who employ their own trading strategies and advanced algorithms use VIX values to price the derivatives, which are based on high beta stocks.Betarepresents how much a particul...