Because Forex is relatively new to the retail trading public, scammers who make unrealistic promises are becoming a constant nuisance. Here's a good rule of thumb, and it doesn't matter if you're trading stocks, futures, options, or Forex ? If anyone promises outlandish returns, don't believe it; it's probably a scam.
Examining spread margin and the impact of portfolio margin on your trading account…
Breaking down the margin calculations for short option positions allows you to determine how many options you can sell.
With the "diagonal backspread," you buy longer-term options and sell a lesser number of nearer-term options that are more in-the-money. Diagonal backspread opportunities often exist in volatile, relatively high premium markets, such as we have been experiencing. With the call diagonal backspread, you can take advantage of the fact that in nervous markets, the nearer-term lower-strike options become steeply overpriced, while the longer-term higher-strike options tend to remain fairly priced.
Exploring the difference between equity and index multipliers, settlement values, exercise and more…
Exploring when and how to use cash-secured equity puts (CSEPs)…
Exploring when and how to use collars to manage the risk of your equity portfolio.
Okay, so things are rough out there. But just because the world is facing financial Armageddon, and long-term investments are falling apart faster than the New York Mets in September, that doesn't mean your trading account has to suffer. In fact, some traders thrive in this rock 'em, sock 'em environment. Just take a look at the volatility in the Great Britain Pound ? U.S. Dollar currency pair (symbol GBP/USD)…
What Is The TED Spread & Why Is It At The Highest Level Since 1987?
Currency volatility is at its highest point since the year 2000, as the markets swing wildly while absorbing bad news of historic proportions. The head spinning moves we've seen recently have driven the Average True Range, also known as ATR, of the major currency pairs to levels that are rarely reached. In this article, we will explore the basic mechanics of ATR and explain why it is so important to forex traders.
Traders Talk Live Radio (which airs on AM 560 WIND in Chicago) recently featured www.TheOptionsInsider.com founder Mark S. Longo as a special guest. Mark discussed the impact of the short selling ban on the options market as well as a few protective options strategies for these troubled times. Options Insider Radio listeners can find the complete broadcast here…
The mechanics of vertical spreads are virtually the same when a trader establishes a bearish position using a debit put spread, except the profit and loss regions are on opposite sides of the breakeven point. In this article, we will examine five potential payoff scenarios involving debit put spreads…