Wednesday, June 23rd, 2021

What Is the Difference between Futures Trading and Options Trading?

Both futures trading and options trading contracts allow the trader to speculate on the future price of stocks, commodities, and foreign currencies. But, what is the difference between futures trading and options trading? The basic difference is the matter of right versus obligation. A buyer of an options contract purchases the right but not the [...]

How Do Binary Options Work?

A binary option is a somewhat simplified version of options trading. How to binary options work? In trading either American or European style standard options a trader purchases the right to either buy or sell 100 shares of a stock, which he will do if the stock price moves as he anticipates. He is under [...]

Stock and Forex Options

As the US economy shows signs of a sustained recovery, debt concerns heighten in the European Union. During the last year both stock and Forex options provided speculators with a means of profiting from the volatility inherent in the post recession economic world. International businesses, that typically use options to hedge currency risk, continue to [...]

Effect of Short Sale Curbs on Options Market

Many in the options markets are concerned about the effect of short sale curbs on options market trading. How to trade options profitably may change a bit with the new rules. As of the end of February new trading rules will place restraints on short selling. If a stock falls more than 10% in a [...]