Trade Futures, Spreads and Options with Confidence.
From active speculation to risk management, buying and selling options can give traders ample flexibility in the market. However, unlike trading standardized futures products, trading options contracts requires a bit more skill and expertise. Let’s take a look at the mechanics of buying versus selling options contracts. Buying Vs. Selling Options 101 Before making a… Read more.
Unlike other securities, options feature a collection of unique functionalities. An options contract provides the trader the opportunity to open leveraged bullish or bearish positions in a variety of markets. If done correctly, buying and selling options contracts can be lucrative, producing consistently positive returns. However, before diving into the market with both feet, you… Read more.
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.
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.
Tip 1: Have an exit plan. It seems very elementary, but some traders will spend numerous hours looking for opportunities to enter a market, but put no thought into how and when they are going to exit. Whether you base your trading decisions technically or fundamentally, you will need to know when you are going… Read more.
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.
This is a revised version of an article that originally appeared in FutureSource’s Fast Break Newsletter on September 24, 2004. Have you purchased an option position in the past, and had the market move in your favor, only to ultimately lose money on the trade? Read this article and you might get some answers about… Read more.
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