Stock Options and Futures

Exercising an option means exercising your rights to buy or sell the underlying asset in accordance to the parameters of the option.

When you exercise a call option, you will get to buy the underlying stock at the strike price no matter what price the stock is trading at in the market.

When you exercise a put option, you will get to sell the underlying stock at the strike price no matter what price the stock is selling at in the market.

In both cases, the option you own disappears from your account.

no, forex trading, whether exchanging physical currencies or online speculation/hedging via a brokerage is completely legitimate. There may be some unscrupulous individuals or companies out there, but the act of forex trading is completely legitimate.

The best option is the SAS output file.

(apex) a contract setting the price and date for a commodity purchase.

Well, as a professional trader I would like to answer this question. Each trader has to find out about the broker: regulation (FSA, SEC, FINRA), type of trading platform, minimal deposit and investment, payouts, list of assets, secured trading environment, speed of withdrawal, testimonials and support service. The information about these points you should find contacting support service, reading reviews in the Internet, ordered demo-account.

from the very beginning of binary options trading career each trader tests different strategies making small deposit or asked demo-account from the broker. Each trader selects his-her own comfortable strategy which can bring him-her desired profit. I can recommend triangle strategy, head and shoulders.

Selling a naked put is a bullish strategy, and is mathematically the same as a covered call write, where you buy something and sell a call against it. Selling a naked call is a bearish strategy, and is the same as covered short write, where you short something and write a put against it. In either case, you make money from time decay, falling volatility, or a move in the direction that you want.

A Put option

A backwardation is a situation in a futures market where prices for future delivery are lower than prices for immediate delivery.

Anyone

When you buy an option, you are buying an asset, and do not have a future liability.

When you write an option, you are potentially incurring a future liability Thus you need some assets to back this liability.

(apex) a contract setting the price and date for a commodity purchase.

Gillette is part of Procter & Gamble. They're traded on the New York Stock Exchange.

The expiry date for stock in future segment is not known clearly.

Pro Trader Institute provides Options Trading training and other services to individuals who manage their own investment portfolios.

Here is their Mission Statement:

The mission at Pro Trader Institute is simple: to teach you how to trade like a professional trader. We want you to be able to identify trades that are consistent with your objective for growth and/or income while respecting your tolerance for risk. We provide the education, tools and support you need to take complete control over your portfolio, and therefore, your financial future. Once you see the power in trading options, both your confidence and aspirations will take flight.

Porkbelly Futures was created in 2005.

When you buy stocks, you buy partial ownership in a company.

When you buy options, you are buying permission to buy or sell (depending on what kind you get) stock at a specific price. You pay a "premium" to enter into the contract; if you have the kind of option that lets you buy - it's called a "call option" - then you pay for the stock separately.

A call option gives its buyer the right to purchase a certain issue of stock at a specified price (called the strike price) on or before a specific date. Say, 100 shares of Acme at $20 per share, for which the purchaser pays a nonrefundable premium of 75 cents per share.

A call goes in-the-money if the share price is higher than the strike price. However, it makes no financial sense to exercise the option unless the share price goes higher than the sum of the strike price plus the premium...in this case, you break even at a share price of $20.75. Since you can hold calls until they expire, you'd obviously want the share price to go higher than $20.75 because no one plays the stock market to break even!

There are two risks associated with calls: the call could expire worthless, which causes you to lose your premium; and the stock price might not go high enough to meet your investing goal. Back to Acme: You want to make $500 out of this transaction. The strike price is $20, the premium is 75 cents and your online broker charges $10 per transaction (10 cents per share) when you sell, so each share costs $20.85. To make $500 profit on this deal, Acme must hit at least $25.85. If the stock hits $23 and plateaus, you'll make money but not as much as you wanted.

We're talking plain vanilla call options, correct? Say, a $49 call on 100 shares of Acme at a $1/share premium. (The weird strike price will make sense in a second.) The IRS considers all the money you paid to buy the stock to be the "basis price," so add the strike price of $49 to the premium of $1, multiply by 100, and you get a basis of $5000 for this transaction. (I'm going to leave out commissions here because I want the math to be real simple to understand.)

At this point the IRS doesn't want you to file anything. You only file when you sell, because until you sell there's no capital gain or loss incurred.

Four years down the road, you decide to sell this block of stock. The price has gone to $75 per share. Subtract the $50 basis from the $75 sale price, and you've got a $2500 capital gain that you get to pay taxes on.

The optionsxpress website provides a free education in many areas of financial trading including Canadian Dollar futures. It is easier than ever to get into trading with all of today's information that is readily available via the internet and other resources.

Brent crude oil futures are stocks whose price flactuates every now and then. This is affected by various factors in the market but mostly that of demand and supply.

Easy Forex has a good guide on purchasing oil futures. They will also provide guides for purchasing everything on the futures market from gold to wheat to pork bellies.

Option software of options trading software helps in analysis and trading of options. Real time quotes are provided to keep up with going values and help build models to base strategy on.

there are two types that are part of the commodity futures market. A normal futures market is one where the price of the nearby contract is less than the price of the distant futures contract. The other is an inverted futures market, the price of the near contract is greater then the price of the distant contract.