Posts Tagged ‘spread’

Futures Options Trading – How Option Spread Works – Currency Futures Trading

Article by stoptroncm

At least, find out whether the spreads are variable or mixed, what are the maximum and average spreads for every currency pairs and if the commission is per trade aside from the spread. When determining the validity of the customer support, ask a couple sample questions regarding any given investment decision. Conducting research and doing homework is crucial for this step. You should be aware on how you broker handles these spreads. Aside from these tutorial solutions, these Forex web-sites also have equipment which can enable you to navigate while you conduct your dealing, and certain facts are also furnished to manual you when you come to a decision whether or not to buy or offer.

If you need to starting trading on the internet, just believe that it really is quite basic as long as you may have an online connection, and a laptop or computer of course. Thus, one must fully understand the process of selecting the best online Forex trading platform to be a successful trader. Statistical trends are updated each now and then to assist you keep track of the activities from the trade market. Since futures utilizes tick prices, it is expected that the moment your order is put into place, the price that you actually buy or sell is different from the recognized tick price.

The time it takes to answer the question satisfactorily is key when determining the success of the actual customer support. – Their compulsory registration with regulating bodies such as National Futures Association. The next thing you do is to do a research and find out the legitimacy and financial steadiness of your target online broker.

Statistical trends are updated each now and then to assist you keep track of the activities from the trade market. Some forex brokers rollover both the debit and credit account of the trader while others only debit your forex account which means that you won’t gain any credit for carry trades. If you need to starting trading on the internet, just believe that it really is quite basic as long as you may have an online connection, and a laptop or computer of course. Companies and governments sell shares of their companies and governmental bonds for consumer and business purchase in order to gain capital and allow profits for those that wish to gain access to this form of market sharing. Given the trending nature of forex trading, a trader, whether technical or fundamental, is attracted to it.

Since there are a lot of brokers, the process will be quite different from a practice to an actual and live account. Finally, ensure the platform selected provides various stages of upgrades and downloads. Given that this can be trading, you need to obtain a starting capital, which isn’t as well large relying on how a lot you need to expend, and also the wits to generate vital choices in buying.

Thus, one must fully understand the process of selecting the best online Forex trading platform to be a successful trader. When determining which one to use, ensure there has been plenty of sampling and research. The next thing you do is to do a research and find out the legitimacy and financial steadiness of your target online broker. In forex market, real time price is utilized for the price offer and this is the price used when buying or selling.

Some investors may not know it, but all financial trade markets have a spread which is the difference between the bidding and asking price. In forex market, real time price is utilized for the price offer and this is the price used when buying or selling. It is also your job as a trader to find out how a broker works on rollover credits and debits. Market liquidity, structure of pricing, and existing leverage are just few of the differences. The major source of profit of your broker and an operating expense on your part is the spread which is actually the difference in amount between ask and bid prices.

Thus, one must fully understand the process of selecting the best online Forex trading platform to be a successful trader. Since there are a lot of brokers, the process will be quite different from a practice to an actual and live account. The time it takes to answer the question satisfactorily is key when determining the success of the actual customer support. Online forex trading is open 24 hours a day for 5.5 days per week.

As this segment of investing and trading has evolved, there have been several advancements and improvements to this type of system that allows for a very smooth trading process. If you need to starting trading on the internet, just believe that it really is quite basic as long as you may have an online connection, and a laptop or computer of course. Online forex trading is open 24 hours a day for 5.5 days per week.

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Bid-ask spread narrow or wider question?

Question by pps p: Bid-ask spread narrow or wider question?
Respected Traders,

I have a question regarding in judging the spread is wide or narrow.
I heard, you should judge whether the spread is wide or narrow relative to the price of stock.
e.g;
500$ stock having 0.50$ spread is still narrow because of high price of stock
50$ stock having 0.50$ spread is considered wider because of low price of stock

I cannot undertstand how to evaluate the average spread (Acceptable spread) for stock with different prices.
Can anyone please teach me in simple way of how to evaluate the average spread?
e.g: As a trader,what would be average spread for a stock price 10$ is considered safe by you?How would you judge this?Please help me out in this issue.

If you Know by any other ways of evaluating the average spread for each stock,I kindly request you guys to teach me in simple way with clear explanation.Please explain to me as you could explain to 5 year old kid.

Question #2:

Similarly For Options Trading,
what is the maximum spread you will accept if you choose ITM Options?
What is the Maximum spread you will accept if you choose ATM options?
What is the Maximum Spread you will accept if you choose OTM Options?

Similraly,How would would you come to conclusion for option contract,whether the spread is wider or Narrow?
Please explain to me in simple and clearly.
Thank you.

Best answer:

Answer by rexx0046
you are asking too many things at once. you could probably easily find all your answers on the internet if you made some effort.

generally you want to trade something with high volume since the higher volume is how you get lower spreads. and you are correct in that a lower spread means a lower percentage. you want a lower spread when you buy and also when you sell.

as far as what maximum spread you should accept that will depend on how much profit you are likely to make on your transaction and will depend on your strategy and tactics. this is true regardless of what you are trading. the five year olds that i know would not be able to understand and do this successfully.

hope this helps

What do you think? Answer below!

Learn Trading Info Option Lesson 6: Call Ratio Back Spread

www.learntrading.info Learn Trading Option Lesson 6: Call Ratio Back Spread. Free Trading Ebooks, Videos & Articles. Learn Trading Forex, Option, Commodities, E-mini and Stocks.
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Credit Spread Trading Question 10 by Jeffrey Ziegler

www.JeffreyZiegler.com To view more FAQ videos about Option Credit Spreads or to get my FREE Video called Paychecks from Wall Street visit my website http
Video Rating: 5 / 5

Vertical Spread Option Trading II p5/6

Vertical Spread Option Trading II p5/6

Chuck Hughes: Option Spread Strategy Produces 194% Return

The option spread strategy is a great way to profit in up, down or flat markets. A diversified portfolio of option spreads can be traded in smaller accounts. For example, trading one contract would only require a 00 trading account for the option spread portfolio below. Learn how this portfolio produced a 194% average return.

Can being assigned while doing a call vertical option spread make you more money than just a regular spread.?

Question by fakechat6: Can being assigned while doing a call vertical option spread make you more money than just a regular spread.?
Generally speaking I hear on the boards a fear of being assigned when you play options. When I analyzed my vertical spread I came to the conclusion it might be a good thing but wasn’t sure if my math was so I am asking for a check on it.

Lets say your assigned a 2 days early because the spread on the bid ask was a little out of whack and it was better for the owner to exercise the option inseat of selling it back. I have a call vertical spread where I went long the 45 and sold short the 48. The Short call was assigned to me and I am now -100 short stock at 48 basis and still have my 45 call. (for simplicity ill ignore the debit I paid to do the trade). Assume the underlying stock is at 50. I figure if I end the trade now I lost $ 200 on the 48/50 -100 short and made $ 500 on the 45 call for profit of $ 300. Thats the max I could have made on the trade if I had sold the vertical. If the underlying stock goes up or down the next 2 days I beleive I keep my $ 300 gain because the long and short -100 just move together. However if the underlying stock drops down I also am garunteed at least $ 300 but I think i could even get more.

when I drop below the 45 call strike price the -100 short is not offset anymore buy losing money in the long call. Say the underlying drops down to 40 because a oil rig blew up or something. When I sell my long call I would get nothing because it is below 45 but my -100 short is now worth $ 800 because my basis in the short -100 is 48. So Basically a vertical call spread with a max profit of $ 300 can be worth much more because of assignment. I realize you have to pay interest and margin issues but is the basic math correct that I presented here, being assigned can be a good thing?

Best answer:

Answer by Money
Can you make your questions simple?

Give your answer to this question below!

Spread betting/trading company that trades rough rice futures online (not phone)?

Question by TommyT: Spread betting/trading company that trades rough rice futures online (not phone)?
Also I would like to be able to have the option to have the account in euro, sterling, or dollars, and I would like to have the option to place guaranteed stop/loss orders on all commodities bets, including softs.

Cheers.

Best answer:

Answer by guidfarr
If there is indeed one that offers that, it would be IG – they are the biggest spread betting provider that cover most markets and offer guaranteed stops.

Add your own answer in the comments!

Ratio Spread Options Trading from Trading Pulse

how-to-trade-options-live.com Ratio Spread Options Trading from Trading Pulse

Australia 200 cash index minimum spread cut to 1 point

Australia 200 cash index minimum spread cut to 1 point

(PRWEB) August 21, 2011

Singapore’s number one CFD provider for customer service*, IG Markets, has cut the minimum spread on the cash contract and SGD-Denominated contract of the Australia 200 Cash index to 1 point.

This spread cut is applicable to standard, mini and micro contracts. It improves the already tight spreads on our extensive range of stock index CFDs, starting from as low as 0.2 points on the Singapore Blue Chip. Spreads on other popular indices include the US S&P 500 from 0.5 points, and the FTSE 100, US Tech 100 and Germany 30 all from 1 point.

Peter McDermott, Managing Director of IG Markets in Singapore has said that this cut, following other spread cuts on indices and major FX pairs, is in line with IG Markets’ high standards of client service and commitment to provide value for money.

“When the spread in the underlying market is narrow, we pass these savings on to our clients with our lowest possible spreads. Our competitive rates include spreads on global indices from 0.2 points, major FX pairs from 1 pip, and commissions as low as 0.1% on share CFDs.”

“With transparent charges, rebates for high volume FX traders and our innovative price improvement technology, IG Markets is committed to remaining Singapore’s best CFD Provider for value for money as well as customer service*.”

Stock indices are a measure of the combined value of underlying stocks in a particular market. A stock index will typically represent a number of leading stocks in a sector, with the Singapore Blue Chip representing companies like DBS, Singapore Airlines and UOB.

IG Markets offers traders 24-hour trading across a wide range of global stock indices, including the Australia 200, Singapore Blue Chip, Hong Kong, Hong Kong HS42, Wall Street and Japan 225. Even when the underlying market is closed, IG Markets quotes out-of-hours prices, which means that traders can take advantage of changes to the market in real time, as other open markets rise and fall.

Along with global indices, IG Markets offers CFDs on FX, commodities, shares, options, binaries and more.

About IG Markets

IG Markets specialises in financial derivatives, principally CFD trading on over 7,000 global share CFDs, indices, FX, commodities, options, binaries and more. IG Markets is part of the IG Group, a UK FTSE 250 member with over 75,000 active clients worldwide. For further information please call +65 6390 5118 of visit http://www.igmarkets.com.sg/.

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. CFD trading may not be suitable for everyone, so please ensure that you fully understand the risks involved. Please consider our Risk Disclosure Statement before you enter into any transaction with us.

Investment Trends’ 2010 CFD & FX Report revealed IG Markets scored highest for overall customer satisfaction among Singapore’s CFD traders. The survey of nearly 8,000 investors, also revealed that IG Markets received the highest scores in the CFD industry for value for money, spreads, margin requirements, easy-to-use platform, charting, efficiency of taking trades, email and telephone customer service, reporting of positions and transactions, and phone trading.
IG Markets (ACRA No. 53059621X) is licensed by the MAS and International Enterprise Singapore.

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