Understanding Option Trading, Simply

Saturday, June 4, 2011

Option trading is one method of trading that you can partake in. But, in order to take advantage of it, you need to find out just what it is and how it works. This will help you to make decisions that will affect you throughout your trading experience. Here is some basic information about option trading to help you.

What Is An Option?

Your basic question of what an option is can be answered like this. It is a contract that allows two parties to come to an agreement that the buyer will have the right to buy or sell a parcel of the shares. It is set at a predetermined price and at a predetermined date. The buyer does not have to take the option though. He has the right but not the obligation to do so. To get this right, the buyer will provide a premium to the seller.

Call Options

There are two types of option trading that you need to know about. In a call option, the buyer has the right to buy underlying shares of a stock. It is set at a predetermined price and also a predetermined date. Again, the buyer has the right but not the obligation to do this.

Put Option

The second type of option is the put option in option trading. In this type of option, the taker has the same fundamentals but is selling underlying shares. He has the same set up of having the right to do so but not the obligation to do it. Also, the same standards of the predetermined price and date also apply. The buyer of a put option is required to deliver the underlying shares only if they exercise the option.

If you would like to learn more about option trading, you simply need to contact your financial advisor and find out how it can serve your needs.

What is Forex?

Tuesday, March 23, 2010

Foreign exchange market is also called "FOREX" or "Forex" or "Retail forex" or "FX" or "Spot FX" or simply referred to as "Spot" is the largest financial market in the world with a trading volume of over 4 billion dollars a day. If we compare this amount to 25 billion dollars a day trading volume on trade in New York Stock Exchange, then you can easily see how it changes. This could mean that the Forex is more than three times the total number of combinations of stocks and futures markets!

What is marketed in the forex market?

Monday, March 22, 2010

Is simply money. Forex Trading is one of the activities of buying and selling currencies currencies simultaneously. The currency traded through a broker or dealer and traded in pairs, for example the euro / dollar (EUR / USD) or the pound sterling and Japanese yen (GBP / JPY).

This trade could be a headache because you do not buy goods that are physically visible. Imagine that you are buying a currency as buying shares in a country. When you buy, for example, the Japanese yen, then you want to buy shares in Japan's economy, where exchange rates are a direct reflection of what the market thinks of the economic situation in Japan today and tomorrow.

About Forex

Sunday, March 21, 2010

Unlike other financial markets like the NYSE, there is no physical location or central administration of the Forex market. Called Forex Market Over-the-Counter (OTC) market or interbank, because the overall market managed by electronic systems, a network of banks, which lasted continuously for 24 hours.

Until the end of 1990, only "some people just Ornager, who can play on the Forex. The initial funds required for exchange is ten to fifty million dollars! Forex was originally intended for the baker and large institutions - and not the "little people", we dark. But with the development of the Internet, firms can be online Forex Trading Account Forex provides traders with small shops like us now.

Everything you need to start a computer, Internet connection, and the information contained in this blog.

Spot market is real?

Saturday, March 20, 2010

Spot market is a market transaction prices of financial instruments currently.












Spot market is a market transaction prices of financial instruments currently.

When a currency can be traded?

Friday, March 19, 2010

FX spot market is a very unique market. It's like a Super Wal-Mart is open 24 hours a day. Each time, somewhere in the world happened to financial resources, exchange occurs every hour day and night on the banks and other financial institutions.

WHAT FOREX IS NOT

Tuesday, April 21, 2009

Forex is not a quick rich scheme.
Forex is not easy even though my blog says so.
Forex is not a place for newbie
Forex is not something you can learn overnight
If you needed the money, dont put it in Forex. Seriously. Go somewhere else.
Forex is a journey, enjoy it.
There is no such thing as holy grail coz there is no perfection in this world. If perfection exist in this world it would be boring. No more room for improvement.
Forex is not rocket science. There is no right or wrong. There is only probability.

TRADING ONLY WITH MOVING AVERAGE

Friday, April 3, 2009

At the moment I am rather busy. Moving to a new place and house. The house still needs a lot of work. As a result, I do not have time to update this blog. Trading is still going on but on a shorter timeframe. Result is consistent now. AudUsd is very kind at the moment with no sudden movement.

In the next few weeks I will show you how to trade using only MA. As usual what works for me may not work for you. This is because some of you may not be able to follow the rules of the game.

RULES OF THE GAME
1. Trade based on your capital and the time that you have. The bigger your capital the longer the TF. The more time you have the longer the TF. Vice versa.

2. Only trade at the direction pointed by the MA pairs. If the MA pairs is showing mixed direction, do not trade. The MA pairs must be pointing at the same direction.

3. If a trade suddenly change direction, do not hesitate to close it at a loss and turn the trade. This is the hardest part where most of you failed. Free your mind or become a loser all your life.

4. Keep in mind, there is no such thing as winning all the time. Just make sure you win a lot more than you lose. In the end your profit will grow along with your confident.

Simple system with simple rules. I like to keep it simple. No point of having the most complex system when simple system can have the same result. With this system you will be out of the market most of the time. This is because you will only be taking the big move and avoiding the small move and market noise.

Last advise. Do not anticipate. Forex is not a game of inteligence eventhough this system at full swing will show you possible turning point. I am having a possible turning point for audusd at 0.7200 but I will not take it coz there will be market swing before the actual turn. Why wast time waiting for the big move when you can actually see when its going to move.

In the mean time, good luck for all of you. I will be back once my pc is online again. At the moment I am posting this on a laptop. I dont like laptop, too small keypad, makes it hard to do speed typing.