The financial reform bill seeks to curb Wall Street’s taste for derivatives by moving most swap trading to regulated clearinghouses. Yet a provision quietly dropped from the legislation last week could cement big banks’ control over the very exchanges that are intended to make the capital markets safer. Under pressure from the financial industry,...
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As discussed in the next section, the physical commodities, especially energies and agricultural commodities such as Coffee, Soybeans or Sugar, generally have fundamentals (such as warehouse supplies, consumption trends, or planting and harvest cycles) that do not change over the course of a few months. By positioning only in markets with the most clear...
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An option’s value is made up of intrinsic value and time value. Intrinsic value is how much the option would be worth if it was exercised today. In other words, it is how far it is in the money. For instance, if August Crude Oil was trading near $52 per barrel, an August Crude...
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Why Options Trading? Successful Investors like Robert Kiyosaki and Robert G Allen have popularised options trading through the use of options strategies as part of an overall strategy to financial freedom. They preach that options trading is the investment of the rich. So, what makes options trading so powerful? Options Trading Grants Unprecedented LEVERAGE!...
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If you are looking at getting into options trading, then you should know that there are four different types of options traders. These include the long-term traders, the medium-term traders, the short-term traders and the day traders. For each of these different types of traders, there is a distinct options trading strategy and a...
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