Four Steps to Adjusting Bull Put Spreads
Put credit spreads, also called bull put spreads, are a very popular strategy used by many traders. The put credit spread is most often used when a trader expects a rise in the price of the underlying. It is constructed by selling a put option at a specific...
Seven Potential Risks in Trading Forex
The foreign exchange market (Forex) is the over-the-counter market where currencies from all over the world are traded. In terms of trading volume, the Forex market is the largest financial market in the world. Trading the foreign exchange market can offer...
Straddles and Strangles; Strategies for Significant Price Movement
Many traders use straddles and strangles in their options trading plan. Today's article will give a synopsis of the setup of each of these strategies, as well as outline some of the key distinctions between the two. What is a Straddle? A straddle is an options...
Futures Contracts for Speculation and Hedging
What is a ‘Futures Contract'? Futures contracts can be used by hedgers and by those who speculate. Producers or buyers of a commodity of an underlying asset are able to hedge or lock in a price at which the underlying asset can be bought or sold. ...