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What is a stock option agreement?
A stock option agreement is a contract between two parties that that allows one party to buy or sell a particular asset at an agreed upon price at a future date. Professional is usually a good way to go. That way you are sure all the details are fine tuned by someone who knows what they are doing.
What are the worst stocks to invest in?
Anything priced under $5 per share, which is called a penny stock. (Used to be, penny stocks were under $1 per share, but everything gets more expensive.) Penny stocks are more likely to go down in price than to go up, so they are the worst stocks to invest in.
What is a person called who buys shares and sells them immediately?
The closest thing I can think of is a day trader--someone who gets out of all her positions before the end of the trading day. This is an EXTREMELY risky practice and most people who try it lose their asses, but it's possible to make money doing it if you have a very keen sense of the market.
According to Optiontradingpedia.com,
"A stock option is a contract that gives the buyer the "right" or "power", but not the "obligation", to exercise the contract on or before a fixed future date (the exercise date or expiration) to trade the underlying stock at an agreed price."
Essentially, it is a trading instrument that gives you leverage if used purely for speculation and protection if used as a hedge. The various options strategies that can be made using options also gives traders a precise mean of trading almost every outlook on a stock.
Where can one learn about futures trade?
Futures are traded through brokers. Before choosing a futures broker it is important to check with the National Futures Association to see if any disciplinary action has been taken against the firm. Look for a broker with integrity and a great deal of familiarity with commodity you wish to trade. Futurespros.com has a list of online futures brokers and is a great place to start your broker search.
What are the disadvantages of options trading?
Some of the disadvantages include the major risk that you are taking. You may buy the stock at a high price, but have to sell if much lower. Another disadvantage is the other missed opportunities. The most that you could make by selling in option is the price of an option.
What do you mean by Bombay Stock Exchange?
Bombay Stock Exchange:
The BSE is the oldest stock exchange in Asia. It is situated in Dalal Street in Mumbai. It is the third largest stock exchange in south Asia and the tenth largest in the world. BSE has over 5000 companies that are listed in it. The objectives of the BSE are similar to that of the NSE. BSE also uses the latest technologies in the IT field to provide a single place where traders from across the world can buy/sell shares in the Indian share market.
BSE Index:
The BSE Index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the Index. Since the number of countries involved is lesser, the index variations are higher when compared to the Nifty index.
Who regulates the stock exhanges in India?
SEBI is the primary governing/regulatory body for the securities market in India. All transactions in the securities market in india are governed & regulated by SEBI.
SEBI stands for Securities and Exchanges Board of India
What does futures trading involve?
It involves investing in business and the stock market.I would be careful in what you invest your money in and who you invest your money with. don't get scammed like people did with bernie madeoff.
Can you buy a percentage of a stock?
You can buy any percentage of a stock listed on the stock exchange. The dollar amount invested in a stock will be rounded and issued based on the stock price at time of purchase.
What is ramen noodle's stock ticker?
Ramen noodles are a type of noodle, not a company, so the question cannot be answered without knowing which brand of ramen noodles is meant. Nissin Foods makes the Top Ramen brand. Maruchan, Inc., a division of Toyo Suisan, makes Maruchan Ramen Noodles. Nissin Foods trades on the Tokyo Stock Exchange under ticker symbol 2897. Toyo Suisan trades on the Tokyo Stock Exchange under ticker symbol 2875.
What exactly is Option trading?
An option is the right to buy or sell a certain amount of stocks, an index or another sort of investment at a certain price and at a certain time. Usually this right can only be exercised on one special day which is fixed in advance. Some options in Europe enable the investor to exercise the option during a certain period of time. Example: A stock is trading at $40; the right to buy one stock at the price of 39 is worth $1. If the price falls below the strike price of 39 the option is not worthless until the day of expire due to the fact that the stock might rise above that level. If the price is higher than 39 the option is "in the money" if below (out of the money) if exactly or approximately at the strike price it is called "at the money". The main advantage of options is the fact that you have to invest only a small part of the money you would need to invest to have the same opportunities. If the stock price rises from 40 to 42 the inner value (stock price-strike price) has risen from 1 to §3. An increase of 5% of the stock led to a profit of 200%. If the price falls, you lose a higher percantage of your money. If the price falls below the strike price and closes there on the last day your investment is worthless.
How does options trading work?
On Options trading there are only two possible outcomes to the trade. The trader needs to choose whether the price of an asset will go up or down. in case that you win (forecasting the right direction) you can make as much as even 80% in one hour.
You need to take into account that if you lose (the asset price go to the opposite direction from your forecast) you lose all 100%. so there is big potential but a lot of risk.
When should you buy put option and call option?
In commercial contracts, there are situations of defaults/deadlock between the parties. In such a situation parties are given options, like put and call options as exit strategy. A call option is a mechanism wherein a party can call the another party to do something. Such kind of arrangements can specially be seen in shareholders/joint venture agreement where in case of default first party can ask the second party to sell its shares to first party.
How can one trade stock options online?
You can purchase stocks via an online broker. You can also purchase mutual funds that invest in a range of stocks. You can also purchase the option to buy a stock online at another day for a fixed price - known as "options trading".
What times does the options market open and close?
Regular trading hours are:
Equities: 8:30 a.m. to 3:00 p.m. Central Time
Indexes: Trading hours vary depending upon the index product. Please check the specification page of the Index in question, by visiting the Products section of CBOE.com.
What is the difference between shorting a stock and buying a put?
Safety.
If you short a stock, you borrow it, sell it, wait till the price drops and buy it back. Problem is, if you're wrong you lose money buying the stock back. And if the stock takes off like a rocket, you lose a ton of money.
If you buy a put (for this you normally get a naked put - one where you don't own the underlying stock), being wrong only costs you the premium.
Name of different stock exchanges of world?
Yes, there are many 'Stock Exchanges' in the world. e.g. Dow Jones (Wall Street), Australian Stock Exchange (ASX), London Stock Exchange (FTSE).
There is pretty much a stock exchange in almost every country in the world.
What are the difference between spot and futures market?
The spot market sells things for immediate, or "on the spot," delivery.
The futures market lets you arrange to set the price of something now that you'll pay for and get later.
Commodities users like the futures market because it lets them predict costs. If you make twinkles it's easier to calculate the price of them a year out if you know what sugar will cost a year out. The risk is sugar will be cheaper a year from now than your futures contract has it priced at; that's mitigated by the risk sugar will be really high a year from now and a box of twinkles that sells for $2.99 will have $2.98 worth of sugar in it if you didn't have a futures contract outstanding.
Hi,
I have some few knowledge regarding this nonforfeiture. I had only known that Standard life insurance and long-term care insurance may have nonforfeiture clauses. The clause may involve returning some portion of the total premiums paid, the cash surrender value of the policy, or a reduced benefit based upon premiums paid before the policy lapsed.
If you have any attorney issues regarding this then Law Office of Sebastian Ohanian is one of the best options for you.
Thank you
Explain how future contracts can be used for hedging and speculation?
Hedging: You have some stock you THINK might fall in price. Oh...you have some ConocoPhillips. You bought it at 20, it's now 40 and you're happy as a clam. But wait! You know Conoco's biggest chain of dealerships, the Flying J truck stop chain, is being purchased by Pilot, who owns a huge hunk of Marathon Oil. Translation: there is a distinct possibility Conoco's stock will go down because Pilot could start selling Marathon diesel at Flying J stores. To protect yourself against completely losing your ass over this deal, buy a one-year put in the $30-$35 price range depending on how risk-averse you are, and let things ride until the Pilot-Flying J merger is completed. (If you're seriously risk-averse you'd just get out of the position, but you'd hate yourself in the morning if the stock price went up after you did.)
Speculation: Let's deal in a nice cyclical stock--Brunswick. It's cyclical because of what they make--boats and bowling center equipment. The stock goes down in the winter because people don't buy boats or replace bowling center equipment in the winter, and up in the summer because that's when people do both. If you'd like to speculate in Brunswick, make a prediction as to how low you think it's going to sink, sell puts for a little above that, and IF you were right you'll make out like a bandit.
What is a composite stock index?
A Stock Market index option is a kind of option. In fact, it is a kind of financial derivative. It is often tied to either a narrow-based index or a broad-based index.
What are some option trading strategies?
I will go with the Margin trading exchange
ETOR Exchange is the best cryptocurrency trading platform in India. ETOR exchange also provide Margin Trade Exchange with 100X Leverage, 0% Trading Fee, 0% Holding Charges
How does one trade futures online?
Generally, you will take the long side of a single stock futures when are your outlook on the stock is bullish and take the short side when your outlook is bearish.