I want to go over a common concern with futures options trading. I only recommend and teach selling options if you are covering them by buying options. Sold options that are not covered are called “naked options”. That means that if there is a move against you, and you did not also buy options, ... Views: 817
Many traders who understand futures trading have a hard time understanding futures options. This is because the pricing of the options is sometimes different for the futures option contracts compared to the futures contracts.
For example, the 30 year t-bond futures contract has 32 ticks for ... Views: 835
Have you heard of futures trading? From day trading to positions trading, many people trade in the futures markets. There are also futures options where traders trade an option contract which is directly related to the underlying futures market.
What exactly are they trading? Future ... Views: 789
There are many ways of trading in the futures commodity markets. One way is to trade options on futures. There are many strategies you can use in trading futures options. You can just buy an option or just sell an option. You can also put on what is called a spread using options. A spread is ... Views: 817
Futures contracts as they relate to finance is a simple contract devised to allow someone to ultimately purchase or sell specific commodities that will be delivered at some future time.
Generally there are certain dates and time frames which must be met in order to be a valid contract.
These ... Views: 681
Commodity trading is best done with the help of technical analysis. Technical analysis shows a trader the direction; he should take while dealing with commodities. Whether one should buy or sell is best determined with the help of Technical Analysis. A good trading system will always incorporate ... Views: 761
Commodities are an important part of everyday life whether related to food, metals or energy. They can also be a great way for an investor to diversify beyond the tradition of stocks and bonds or to profit from price movements. There are a number of ways to invest in commodities, some of which ... Views: 675
Over the last decade, the popularity of options has grown significantly. According to the data compiled by the Options Industry Council, the volume of options contracts traded on U.S. exchanges in 1999 was approximately 507 million. By 2007, that number grew to more than three billion, thus ... Views: 719
Gann Square of Nine or Gann Pyramid as it is also called, is one of the most useful tools in the investment industry. Though it is somewhat more complicated than other tools, once mastered it is very useful when applied to financial analysis.
The Gann Square of Nine is most often used to ... Views: 3814
When people speak of futures options trading, they think of the risks involved. There are risks involved when buying and selling options. When buying an option, the risk is how much you paid for the options. There is limited risk involved in buying an option. In selling futures options, there is ... Views: 852
An important component of commodity futures trading is using charts and charting software. We get an interactive and visual representation of the price action data on a chart. This is very helpful in giving us the right signals when we want to take a trade.
How To Use Charts
A good trader ... Views: 984
A lot of people have made a lot of money trading commodity futures. It offers a person scope to earn a huge sum of money with a very limited trading capital investment. How have these people done it? Well, I don’t know if I can answer that question just yet, but here are your beginner’s ... Views: 693
A key component of technical analysis and perhaps one of the oldest indicators around, moving averages are time-tested and affective indicators. There are many types of moving averages with varying indicators, but the primary purpose of all types of moving averages remains the same. Their ... Views: 731
Momentum traders are those who focus on commodities that are moving in one direction with a substantial increase in traded volumes with an aim to attain profits. Momentum traders, when trading the commodity markets, can hold a trade anywhere from a few minutes to a few days. They will try to ... Views: 1002
How It All Began
Commodity futures trading, as we know it today, came about for the first time in Japan in the 17th century, where rice was traded in future contracts. It was a period when farmers and buyers came together and decided to commit to each other future prices negotiated on suitable ... Views: 774
The stochastic oscillator was developed in the late fifties by George Lane. It is an oscillator which shows momentum in a commodity by comparing the current day’s close to the high/low ranges over a specified amount of days. Consistent closings near the higher side of the range indicates buying ... Views: 833
Traders who trade for a living are generally swing traders or day traders. If you are planning to day trade in commodities, then you need to get hold of a reliable trading system that gives good results consistently. Despite having such a system, there are a few things you may want to know about ... Views: 749
The best way to learn how to trade in the commodity markets is to take lessons directly from a successful trader. However, even if you found the right persons, and they taught you all they know, this in itself does not guarantee that you will make money the way they do. For this, you need to ... Views: 766