While looking at the historical price dataset of a Futures contract, you will see some important columns such as Open, High, Low, Last, Change, Settle, Volume, and Previous Open Day Interest for each trading day. The Last column is the price of the last trade on the day. The Settle column shows the settlement price […]
Derivatives
New Online Course – Derivatives
We are pleased to announce the addition of a new course – Derivatives – to our library of courses for Finance Professionals. Course: Derivatives Understand various derivative instruments (forwards, futures, options, and swaps), derivative markets, and the use of options in risk management. Derivatives are financial instruments that derive their value from the value of […]
Trading CFDs Online – The Advantages
What they are Contracts for Differences (CFDs) are a powerful form of derivative that allow traders to take advantage of movements in the price of an underlying asset. The instruments that can be traded through the CFDs can range from stocks (and market indexes) to commodities and many products in between. With CFDs, traders can […]
Stocks – Contracts for Difference
In his book Accounting for Investments, Equities and Options R. Venkata Subramani states that “A contract for Difference (CFD) is a contract between two parties – buyer and seller – stipulating that the seller will pay to the buyer the difference between the current value of an underlying equity share and its value at expiry date […]
Options, Futures, and Other Derivatives (9th Edition) – Book Review
Options, Futures, and Other Derivatives by John C Hull covers derivative markets and risk management. Readers are expected to know basic finance, probability and statistics. A novice to options, futures, contracts and swaps will be hand held through the concepts by the author. The author has also tried to maintain a delicate balance with regards […]
How to Develop a Winning Trading Strategy
Finding a way to put your money to work is important. While there are a variety of different investments out there that can garner you a decent return, none of them are as effective as trading stocks and bonds. Millions of people all over the world use trading to build their wealth and secure their […]
The Hidden Costs of White Label Binary Options Brokers
For new traders with an interest in getting into options, binary options are a great place to start. Binary options simplify the variables involved in making an investment. Binary options allow an investor to make a simple prediction: will the price of an asset increase by a certain date? Unlike traditional options, losses are capped […]
Put Option Payoff
A put option is the right, but not the obligation, to sell an asset at a prespecified price on, or before, a prespecified date in the future. Long Put The payoff diagram of a put option looks like a mirror image of the call option (along the Y axis). Consider a put option with a […]
New Short Courses: Basics of Options and Option Greeks
We have added two new short courses to our member area – Basics of Options and Option Greeks. The first course – Basics of Options – provides an overview of options and how they work. You will learn about the types of options such as calls and puts, how and where options are traded, their […]
What do Derivative Traders Do?
Earlier a derivative trader may have been found at the stock floor, making estimations and shouting them out. Today, a derivative trader is most likely to be found in front of a computer making his estimates and tinkering with code to make faster and better calls. A day at the office would most likely start […]