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Futures Options
- Article1
Futures Option Spreads – Delta Neutral Trading
- Article2
Option Trading – Calendar Spreads & Time Decay
- Option Secrets
Option Basic Training
- call
What is a Call Option? The key purpose of buying options is that they make it possible to speculate on increasing or decreasing futures prices with a manageable risk. The maximum loss...
- deltabasics
What is Delta? Delta is the amount by which the option changes compared to the underlying asset. It is a measure of the probability that an option will expire in the money. Call deltas...
- gamma
What is Gamma? Gamma, measures the rate of change of Delta. When call options are deep out of the money, they generally have a small Delta. This is because changes in the underlying...
- optionspreads
Option Spread Trading A spread is merely a position consisting of two components transacted simultaneously or in close succession where each position would profit from opposite...
- put
What is a Put Option? Whereas a call option conveys the right to purchase (go long) a particular futures contract at a specified price, a put option conveys the right to sell (go short) a...
- thetabasics
What is Theta? Theta is defined as the change in the price of an option for a 1-day decrease in the time left for expiration. At-the-money options have the greatest time value and the...
- strikes
Option Strike Price In options, the strike price is the pre-determined price at which the option may be exercised. Strike price is also known as the exercise price. Strike is the price...
- vegabasics
What is Vega? Vega is the change in the value of an option for a 1-percentage point increase in implied volatility of the underlying asset price. Implied volatility is measured as the...
- volatilitybasics
Option Volatility Volatility can be a very important factor in deciding what kind of options to buy or sell. Volatility shows the investor the range that an assets price has fluctuated...
Futures Trading
- fundamental
Fundamental Analysis Fundamental analysis is the study of the factors that affect supply and demand. The key to fundamental analysis is to gather and interpret this information and then...
- hedging
Speculating & Hedging Speculators are people who analyze and forecast futures price movement and trade contracts with the hope of making a profit. Speculators put their money at...
- history
Why commodity markets were started Many people have become very rich in the commodity markets. It is one of a few investment areas where an individual with limited capital can make...
- limit
Limit Order A limit order is like a market order with one exception, price takes the highest priority. For limit buy orders, the customer includes, along with the type and quantity of...
- market
Market Order A market order is the simplest of orders and is used when the greatest priority of the customer is for immediate execution. A market order instructs your broker to buy or...
- spreads
Futures Spreads Commodity spreads measure the price difference between two different contracts, usually futures contracts. Spreads can also measure the difference between a cash...
- stop
Stop Order A stop order, like a limit order, is only executed once a specific price is reached, but the motivation for the transaction is different. Whereas the limit order is typically...
- supply&demand
Law of Supply and Demand In a market economy, price is determined by the interaction of supply and demand. In this section we will demonstrate how to estimate a market price for...
- support
Support and Resistance There are two components to trend, direction and duration. Markets trend in three directions, up, down and sideways. Markets do not move consistently in one...
- technical
Technical Analysis Theory Is there a pattern to commodity prices? Can you predict future prices based upon past performance? These questions are ones...
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