Common Applications of Options Trading

Table of Contents Chapter 1: Introduction to Options Trading Chapter 2: Options Trading Terminology Chapter 3: Option Trading Strategies Chapter 4: Types of Options Trading Chapter 5: Common Applications of Options Trading Chapter 6: How to Trade Options Navigate This … [Read more...]

Introduction to Short Selling Stocks

A steep decline in the stock market is bad news for most investors. The more exposure you have to the markets, the more you suffer in a downturn in share prices. But not all investors fear a market downturn. There are some who actually take advantage of it. These are known as short … [Read more...]

Who Should Get Involved in Short Selling

Table of Contents Chapter 1: Introduction to Short Selling Stocks Chapter 2: Short Selling Terminology Chapter 3: Short Selling Limitations and Risks Chapter 4: Who Should Get Involved in Short Selling Chapter 5: Factors to Consider before Short Selling Navigate This … [Read more...]

Who Should Use Futures Trading

Table of Contents Chapter 1: What is Futures Trading Chapter 2: How Futures Trading Works Chapter 3: Futures Terminology Chapter 4: Importance of Futures Market Chapter 5: Limitations on Futures Trading Chapter 6: Factors Affecting Futures Chapter 7: Who Should Use Futures … [Read more...]

Introduction to Options Trading

People use options as a means to bet on the direction of a stock. Options generally require less of an initial investment and have more leverage than stocks. The following options tutorial was created to help you understand exactly how they are used an investment vehicle. Table of … [Read more...]

The Basics of Dynamic Hedging

Over the course of the week I’ve been describing all the nuance of a specific options strategy known as a strangle position. While the position is extremely cash intensive, it does provide an interesting thought experiment that might provide some additional insights into how it is we … [Read more...]

Hedging

Hedging Investment strategy that aims at reducing investment risk. Call and put options, futures contracts and short selling are all used for this purpose. A hedge may be used to protect existing profits or restrict portfolio volatility of a portfolio, by insulating against the … [Read more...]