One of the most common things you’ll hear a futures trader say is, “Make sure you lock in profits with stops!” One thing some traders don’t realize is that you can lock in profits with options as opposed to using just a stop loss order. This article will focus on how locking in profits is… Read more.
Bear Put Spreads: An Alternative to Purchasing Puts
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy puts.
Bull Call Spreads: An Alternative to Purchasing Calls
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy calls.
Hedging by Purchasing Options: A Margin Free Way of Risk Management
Talk with any hedger and they’re sure to tell you about an experience with trading on margin. Margin is a good faith deposit that a hedger must have in their account in order to initiate a long or short futures position. For example, the margin on a corn contract is currently $2,362.00. This means that… Read more.
Hedging with Commodity Futures: It’s All About Managing Price Risk!
The goal of hedging is to transfer price risk from one party to another. Hedging has been used for hundreds of years to help producers and buyers protect themselves from price risk.
Options on Futures: An Introduction to Buying Options
This post originally appeared in FutureSource’s Fast Break Newsletter, where Drew Wilkins is a regular contributor on various futures trading topics. One of the most common questions a futures broker gets is, “How do options on futures work?” The truth is, options can be as simple or complex as you want them to be. This… Read more.
Futures Options: Using a Delta Neutral Trading Strategy
Many traders are constantly looking for a way to manage risk. Employing a delta neutral trading strategy can help to manage exposure to the markets. This type of strategy will allow speculative traders to hedge their positions against adverse price movements.
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