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Basic Facts About Futures Trading
Futures markets have been described as continuous auction
markets and as clearing houses for the latest information about supply
and demand. They are the meeting places of buyers and sellers of an
ever-expanding list of commodities that today includes agricultural
products, metals, petroleum, financial instruments, foreign currencies
and stock indexes...... Read
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Basic Training For Futures Traders
In a survey of more than 500 experienced account executives
requesting their very best suggestions for successful futures trading.
The following answers came up most often. 1. Follow the trends. This
is probably some of the hardest advice for a trader to follow because
the personality of the typical futures trader is not one of the crowd.
...... Read
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Why Most Futures Traders Lose Money
Many futures traders trade without a plan. They do
not define specific risk and profit objectives before trading. Even
if they establish a plan, they “second guess” it and don’t stick to
it, particularly if the trade is a loss. After several profitable
trades, many speculators become wild and unconservative. They base
their trades on hunches and long shots, rather than sound fundamental
and technical reasoning, or put their money into one deal that “can’t
fail.”...... Read
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Option Valuation
The option premium - the price of an option - equals
the option’s intrinsic value plus its time value.An option has intrinsic
value if it would be profitable to exercise the option. Time Value
- sometime called extrinsic value - reflects the amount of money that
buyers are willing to pay in hope that an option will be worth exercising
at or before expiration. Read
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