What is options trading? Options trading offers the right to buy at a certain price on or before a certain date. They’re different from futures as there isn’t an obligation to buy so you can “lock in” a price without having to worry about fulfilling a contract. United...
What’s the difference between options trading and futures trading? At first, you might think that futures and options are exactly the same, but they’re not. The key difference between them is that with futures, you’re bound by a contract to purchase the asset at a specific price, while...
The buyer of a futures contract must take possession of the underlying stocks or shares at the time of expiration and not before. Buyers of futures contracts may sell their positions before expiration. There is adifference between options and futures. American-style options give the holder the ri...
A derivative’s price is dependent on or derived from the price of something else. Options are derivatives of financial securities—their value depends on the price of some other asset. Examples of derivatives include calls, puts, futures,forwards,swaps, and mortgage-backed securities, among ...
One advantage of futures and options is that you can freely trade these on various exchanges. E.g. you can trade stock futures and options on stock exchanges, commodities on commodity exchanges, and so on. While learning about what isF&Otrading, it’s essential to understand that you can do...
Futures enable you to open a position at a later date and at a predetermined price. Learn about futures trading, how it works, types of futures and more.
Learn what is Forex Trading, how the Forex market works, and its types. Understand the basics and strategies to get started in the exciting world of Forex trading.
Ways to own a physical commodity is through exercised options or futures contracts, as well as precious metal bullions. Bullion dealersmostly offer precious metal bars, ingots, and coins, that you can buy and own outright. Options and futures contracts allow you to exercise the right to buy ...
Spread Trades: A spread trading strategy involves buying one commodity while at the same time selling a correlated commodity so that the net result is a profit for the trader even if they incorrectly guessed one leg of the trade. Typically, spread trading is applied to futures or options contr...
For most currency pairs 1 pip is 0.0001; for currency pairs with the Japanese Yen such as USD/JPY 1 pip is 0.01. When trading metals, 1 pip for Gold and Silver is 0.01. When the EUR/USD moves up from 1.0925 to 1.0926, the change is 1 pip. With 5-digit pricing, if the EUR/USD...