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The Essentials of Futures and Options Trading

If you’re considering trading in futures and options, you need to know the differences between these investment markets, as well as the risks involved. If you're new to investing, you also need to find a good broker to help you make sense of commodities, securities, derivatives, and future contracts.

How Do Futures and Options Compare?

Although they are similar, futures and options have some important differences. Futures markets are the hub of capitalism. They provide the bases for prices at wholesale and eventually retail markets for [more…]

Trading in Futures and Options: Understand the Risk

Futures traders are, by nature, risk takers. And options are an integral part of the trading game that futures traders play, although it is worth noting that options and futures are viable stand-alone [more…]

Questions to Ask before Trading Futures and Options

Before becoming a futures and options trader, you need to know what you're getting into — and what you may get out of the risk-taking experience. Look to this checklist for key questions that can help [more…]

How to Choose a Futures and Options Broker

If you are interested in trading options but aren’t sure about your own ability to trade them, you need to find a good options broker/advisor to help you out. A broker can assist with strategy development [more…]

Characteristics of Futures Trading

Futures contracts are by design meant to limit the amount of time and risk exposure experienced by speculators and hedgers. As a result, futures contracts have several key characteristics that enable traders [more…]

How to Use Stock Options to Your Advantage

The options market goes hand in hand with the futures markets. When used properly, options give you an opportunity to diversify your holdings beyond traditional investments and to hedge your portfolio [more…]

Key Futures and Options Exchanges in the U.S.

Several active futures and options exchanges exist in the United States. Each has its own niche, but some overlaps occur in the types of contracts that are traded. Here are the names to know among American [more…]

Options for Trading Investment Assets: Calls and Puts

Two types of options are traded. One kind, a call option, lets you speculate on prices of the underlying asset rising, and the other, a put option, lets you bet on their fall. [more…]

How to Read Option Quotes

When you trade options, you have to look at quote boards on your computer, even if you’re using a broker. The following figure shows you a good generic example of a quote board provided by the Chicago [more…]

Trading on Margin Basics for Futures and Options

Margin is what makes futures trading so attractive, because it adds leverage to futures contract trades. The downside is that if you don’t understand how trading on a margin works, you can take on some [more…]

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