Options Trading

By Amit Kothial
If you are one of those who want to gain huge profits from stock options, then it is very important for you to understand the meaning of option trading. At times it can be difficult to learn the exact difference between trading in the stock market and trading in the stock options market. In fact option markets are parallel to futures markets, that give you the right as a holder to buy or sell the underlying commodity for a specific price on (European options) or before (US options) a specific date in the future (known as the expiration or exercise date). Based upon the similar fundamental instruments of futures, it also has similar contract specifications. However, the options are traded differently. Available on futures markets, on stock indexes it can be traded on their own using various strategies, or can be combined with futures contracts and used as a form of trade insurance.

Options trading actually act as a best means to earn money. It is more like giving out cash in exchange for potential profit. You buy assets or things of value, with hopes of producing income in the end. It is available as either a Call or a Put, depending upon whether they give the right to buy, or the right to sell. The Call options give you the right as a holder to buy the underlying commodity, and Put options provide you the right to sell the underlying commodity. However, be it a call or put option, it can be bought or sold on registered exchanges. You deal with buyers and sellers of options/stocks, hoping to bring in more profits.

The best part about Options Trading is that you can have a better control on both the probability of risk and the consequence of risk. In stock trading, you cannot actually control the prospect of loss because you win only if the stock goes up. But option trading reduces the probability of danger as there are options strategies that profit when the stock goes up, down and sideways all at once. Besides this, it also reduces the consequence of risk through leverage.

Today, certainly the success in options trading is determined by price movements and investor's attention to either volatile or commodity stocks. Proper control using bear market options trading strategies can certainly put extra cash in your pockets. Moreover, it can further give you the edge when the next bull market occurs.

To read more about futures and option trading you can visit on stifxonline.com. STIFX, specialized forex trading brokers offers a high professional single trading platform for forex trading along with futures and options trading, currency exchange, cfd trading, commodities trading and more. STIFX also offers forex trading analysis and education to the new and active trader brokers

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Become a Successful Day Trader and Achieve Financial Independence

By Peter Skotnicky

It used to be that only banks and investment firms were day traders. But as advances in technology connects markets to customers and other key players, a lot of people, particularly those with experience or interest in personal finance, are taking charge of their finances and becoming day traders themselves.

Why Become a Successful Day Trader?

People can have varied reasons for wanting to engage in day trading. But if you look closely into it, you'd find the bottom lines are almost always the same:

1.Financial Independence.

For salaried employees, financial flexibility is always an issue. Earning fixed monthly income limits your spending power. Even if you're making substantially more than minimum wage laws dictate, living expenses usually grow with the amount of your paycheck.

And in the case of families with growing children, their needs grow with their children. Unforeseen and/or emergency expenses can catch anyone off-guard and leave your net worth like that of a donut with a huge gaping hole. If you become a successful day trader, financial flexibility would not be an issue.

2. Flexibility of Work Schedule

The intangible market selling financial instruments - money, forex, stock, etc. - is open only a few hours each day. Expert traders can even do their trades from home and work only the famed four-hour work week and make money.

3. Now, if you can create wealth working a few hours a week from anywhere in the world, who wouldn't want to have that chance?

People have so many mistaken notions about day trading and some, unfortunately, get into it without much thought and consideration and end up losing their life's savings in careless gambles. But for those who take their business seriously and treat it like they would a full-time job actually become a successful day trader and make money

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