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Stock Options and Futures
Options are the right to buy or sell a security at a set price over a specified period of time. Futures are contracts to buy or sell assets at a set price on a predetermined future date.
827 Questions
When did fixed commissions end?
I've been looking for the answer myself, of a related question, ("How MUCH were fixed commissions, as a percentage of the stock order?"), but all I've run across SO far, is a vague reference to fixed commissions being prohibited in the 1970's, which seems about right...
As per Indian time when European market open?
European markets begin at around 1:00 PM IST in the afternoon.
European markets begin at around 1:00 PM IST in the afternoon.
What is the Price for waffle house stock?
The Waffle House Inc. is a private company and has been since its incorporation. As a private company nonpublic shares are available.
How do I find a list of companies that sell one share of stock only via the U.S.A. Postal Service?
All companies would sell you any number of shares you want. Even if it is only one share.
Since these days we are doing online trading, the DEMAT and online trading account providers have a limitation of Rs. 500/- as the minimum transaction value per every buy/sell order.
Hence you can buy any number of stocks as long as your order value is greater than Rs. 500
You can buy one share of Reliance industries (Around Rs. 1300) but you cannot buy one share of ICICI bank (Around Rs. 450)
Note: This price is as of this week - 2nd week of Feb 2009. If ICICI stock price goes above 500 you can buy one share of it easily.
This is for stock investments in India Only. No I want listings for U.S. companies only.
What are strike price call put when it is comes to stock options?
From Investopedia.com:
What Does Strike Price Mean? The price at which a specific derivative contract can be exercised. Strike prices is mostly used to describe stock and index options, in which strike prices are fixed in the contract. For call options, the strike price is where the security can be bought (up to the expiration date), while for put options the strike price is the price at which shares can be sold.
The difference between the underlying security's current market price and the option's strike price represents the amount of profit per share gained upon the exercise or the sale of the option. This is true for options that are in the money; the maximum amount that can be lost is the premium paid.
Also known as the "exercise price".
What Does Call Mean?1. The period of time between the opening and closing of some future markets wherein the prices are established through an auction process.
2. An option contract giving the owner the right (but not the obligation) to buy a specified amount of an underlying security at a specified price within a specified time.
What Does Put Mean? An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time. The buyer of a put option estimates that the underlying asset will drop below the exercise price before the expiration date.
What would you be 5 years from now?
This question is similar to "What are your short term goals?" Write down all your goals on a piece of paper and answer the following questions:
What steps are required to achieve this goal?
DO you need any added qualification to achieve it?
What are the objectives of capital market?
the objectives of islamic capital market
1.To ensure the eqitable allpcation of the capial sector.
2.To ensure that surplus fund be attracted for worthwhile.
............BIPBIU IBU..........................
What is a strike price for stock?
The strike price is the heart of the futures market. If you are dealing in puts, the strike price is the price below which the option exercises. If I sell a put on Acme at $10, I can be required to buy the security if it falls to $9.95. In calls, if the share price goes above the strike price the option exercises--if I sell a call on Acme at $10, the option executes if the share price hits $10.05.
What are the drawbacks in commodity futures trading?
The main disadvantages are:
1. Leverage. Can be a disadvantage if it encourages trading with too high a risk for a particular strategy. A carefully devised money management plan is essential.
2. Overtrading. The instant nature of electronic futures trading coupled with low commission costs and tight spreads can encourage a trader to take additional trades to those determined by their trading plan.
******ADDITIONAL ANSWER******
Futures are more expensive to start with than Options, but Futures also make you more of a profit. Rich people have been investing in futures and options forever, and most people don't realize that you can do it as well with a relatively small investment.
The best way to increase your possible profit, and limit your losses is to use the "straddle" method. This is where you bet the price will go up as well as down. You will lose one way, but win on the other. Also, it doesn't matter to you if the price goes up or down, because you can make money on either one. To do this effectively, when you place your order with the broker (which should be between 10AM-12PM EST or 2PM-3:30PM EST), make sure you say: *EXAMPLE* "I want to buy the November Crude oil future at 5105 and sell the December Crude Oil future at 5095." "I also want a stop-loss on EACH position 50 points from entry." Once the price moves 60 points+ in either direction, call your broker back IMMEDIATELY and tell them "I want to place a trailing stop loss on my Daily US Light Crude open position activated at 60 points above open and trailing by 10 points."
This now ensures that you can not lose money, but only break even worst case scenario. You gain 50 points one direction, you lose 50 points the other, and the remaining 10 points will cover the broker's fees for the trades. If you are watching the market closely, you should be able to decide when is a good time to unload and make an easy profit. Hopefully this helps. Good luck, and Happy Trading!
What is optional features pricing?
Optional features pricing involves figuring out the costs of production so that a business can buy low and sell high for a profit. This is usually done in industries like cell phones and printers where the purchase costs are low, but they require accessories like ink cartridges and AC adapters, which makes them more expensive.
Can any one tell who is GVGopal?
G.V.Gopal Branch Managaer, Anagram Capital Ltd, Jubilee Hills And Mehdipatnam Branch, Hyderabad (A.P.) 092462 60452 Raipur Chattishgarh 0771- 4034909, 4035852
What does it mean that the futures contracts are in contango?
The simple answer: When the the futures contract price is higher than the expected spot price when the contract becomes due, or during the lifetime of the contract. When the contract becomes due, the price should be exactly or very close to the spot price (the price of the commodity right now) on the day that it is due. But more often than not, this is not the case. So there would be a decline in prices as the contract approaching the last trading day (or even last minutes of trading that day) as the 'future price' is then matched to meet the spot price.
Non-perishable commodities such as oil or gold are typically contango, as it would cost money to insure, store, etc the underlying commodity. This would make the 'future' price of a contract 12 months from now greater than the spot price to buy the same barrel of oil today. Remember, one of the objectives of futures contracts is for suppliers to lock in a price to guarantee that they will have xx barrels of oil, gold, etc in the future at $yy.yy sales price today.
Contango is just an adjective that describes the actual phenomena of the futures price falling to line up with the spot price as the contract approaches maturity.
The opposite of contango is backwardation.
If you are "called" on your short option you will have to sell the Underlying contract for that option at the option's strike price, which will likely be the stock itself. You will then have two positions; a long LEAPO and a short stock. http://www.optiontradingtips.com/strategies/covered-call.html
A lot of people give gifts of stock to minors. It's completely legal.
What are forward contracts in shares?
A forward contract is the simplest of the Derivative products. It is a mutual agreement between two parties, in which the buyer agrees to buy a quantity of an asset at a specific price from the seller at a future date. The Price of the contract does not change before delivery. These type of contracts are binding, which means both the buyer and seller must stay committed to the contract. This means they are bound to deliver or take delivery of the product on which the forward contract was agreed upon. Forwards contracts are very useful in hedging
What is the supposed advantage of an 'option'?
The advantage of options accrues to their buyer: if a stock's price goes the wrong way, you don't have to execute the option so you won't be out very much money. An example, please: You bought a 90-day "put" option on Acme at $20 on July 1. This gives you the option of selling your Acme shares for $20 at some time during the 90 days covered by the contract. If the price of Acme shares on the open market falls to $18 because Earthquake Pills turn out to start hurricanes, you get to sell your shares for $20, not $18, and you'll be happy. If, OTOH, the stock rises to $23 on the news Acme has the first hurricane pill on the market, you'd be better off selling Acme to someone else so you just let the contract run out. If you had bought a put future instead of a put option, you would have been required to sell your Acme at $20 even if it went to $32 on the news they also had a tornado pill in the works.
Where do you want to be in 6 years?
Studying to be an archeologist ---- Down the runway of a Paris Fashion show :)
What is meant by protective put?
Protective puts are covered puts placed on stock you own, as protection against the share price falling. There is also a "married put," which you buy at the same time you buy the stock. Married puts confuse me. If you are worried enough about the price of a stock falling that you'd buy a put to set a floor for any potential loss, why would you buy the stock in the first place?
Optional money is the non legal tender money, but it is generally acceptable by the people in it's final payments.optional money consists of credit instruments like bills of exchange , cheques ,promissory notes etc.,which does not enjoy any statutory backing.the acceptance of optional money depends upon the choice of an individual person.however they are generally accepted because people have confidence in the credit of the paper
Explain the Difference between business system option and technical system option?
Business system are the logical system which raise on technical system and these are created in SLD.
Technical system are physical system which has system technical information like system server name, host name etc.
Business services are used for B2B scenario and these are not created in SLD. These are used when we have not third party system information.
What is the value of a call option in maturity?
The value of an option at expiry is the difference between the contractual Strike Price and the asset for which you have the call's price at expiry, so long as this number is positive. Should the value be negative, it is bound by zero. This amount is referred to as the Intrinsic Value. For example, if you own a call option on a stock with Strike at $100. Should the final stock price be $120, then your option is worth $20. Should the final stock price be anything less than $100, say $80, then your option is worth $0.
A vested share is a share in a company stock that is fully owned by an employee. Most people who own employee stock become vested after a few years of service with the company.
