Most people view options trading as a very risky way to invest but little did people know that options were first developed in the 1970 to mitigate investment risks. When it’s done right, options can be a powerful way to accomplish protection, both on the up and down side.
Call and Put Options
There are two basic [...]
Arbitrage, or true arbitrage, involves buying and selling a security and taking advantage of prices differences that may exists on different markets. While rare, this does happen from time to time. For example, suppose you find on eBay that someone is selling a brand new iPod for $150 while the local store is buying [...]
Last week, we explored market and limit orders and stopped when we got to conditional orders. Let’s continue our discussion today.
What Are Conditional Orders
The advance in automation technology and electronic exchanges have created a market that is highly liquid and much more volatile than before. Conditional orders were developed as a way to trigger [...]