A typical ratio spread is an options strategy designed to profit from nonvolatile market activity, although the reverse is true for backspreads. This strategy is basically a neutral strategy with a slight bullish or bearish sentiment. A ratio spread trade involves buying and selling unequal amounts...
A put ratio backspread is an options trading strategy that combines short puts and long puts to create a position whose profit and loss potential depends on the ratio of these puts. Put ratio spread is constructed to have unlimited potential profit with limited loss, or limited potential profit ...
When it comes to owning ETFs, a key element to consider is the Total Expense Ratio (TER), which represents the total cost of holding an ETF for one year. These costs consist primarily of management fees and additional fund expenses, such as trading fees, legal fees, auditor fees, and oth...
Abutterfly spreadconsists of options at three strikes, equally spaced apart, wherein all options are of the same type (either all calls or all puts) and have the same expiration. In a long butterfly, the middle strike option is sold and the outside strikes are bought in a ratio of 1...
A vertical spread is a two-leg strategy that consists of two different options (either all calls or all puts) within the same expiration date but with different strike prices. Meanwhile, a horizontal spread, also known as a calendar spread, involves buying options in one expiration and selling...
The difference between the two starting points is the spread, and is somewhat similar to the house advantage in casino games, such as the non-paying "0" in roulette, which throws off the ratio of red to black. An equity spread bet involves gambling on the performance of an individual ...
When it comes to owning ETFs, a key element to consider is the Total Expense Ratio (TER), which represents the total cost of holding an ETF for one year. These costs consist primarily of management fees and additional fund expenses, such as trading fees, legal fees, auditor fees, and oth...
An expense ratio measures how much you’ll pay over the course of a year to own a fund, and a high expense ratio can significantly impact your returns.
Using margin trading as a short-term strategy, helping you potentially capitalize on stock gains while minimizing margin interest. Diversifying your margin trades with multiple stocks spread across different sectors or investing in exchange-traded funds or mutual funds. Building a margin trading strategy...
Peter Lynch is the former manager of the Fidelity Magellan Fund and a world-renowned investor, credited for creating the price-to-earnings-growth (PEG) ratio and popularizing the "buy what you know" investment strategy. For 13 years, Lynch successfully managed the Magellan Fund, which generated...