Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Ask For A Raise

Ask For A Raise - If you have been with the company for over a year and you have been working hard and feel that you are entitled to a...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Online Stock Option Trading

Most investors deal in at least some stocks. It's a concept anyone can grasp. However, when it comes to stock options, comprehension of what they are and what's involved in earning a profit from dealing in them is less universal. Nearly all newcomers to stock market trading avoid them like the plague and many oldtimers aren't any more intrepid. Being able to trade in stock options online may eventually encourage those who lag behind to pick up the pace and enter the competition.

Hold this one thought in mind while we go though the basics: Stock options can provide significant returns. Options are contracts. If you have a contract which confers the right to buy (call option) or sell (put option) some underlying financial instrument, such as a stock or bond, at a predetermined price (strike price) on or before a preset date (expiration date), you've got an option. Options officially expire on the Saturday following the third Friday of the contract's expiration month. Since the market is closed Saturday and Sunday, this is just a bit of meaningless hooey, and that third Friday is the date to keep circled on your calendar.

Having, or opening, an online brokerage account is the first step. The second is getting it approved for options trading. The online brokerage you're dealing with will ask you a number of questions to determine if you meet their criteria for becoming an options trader. Due to government regulations, most options brokerages prefer new options clients to be experienced stock traders with a certain amount of funds to invest.

Assuming you've met those requirement, determine which stock you want to buy an option on. Nearly all stock-market reporting Websites show option prices as well as prevailing stock prices. You can always check the price of options at your online brokerage, but option prices are often delayed by 15 - 20 minutes and success in online stock option trading can depend a great deal on the most current information.

Understand that when you buy an option, you're not buying the underlying financial instrument. You're merely buying the right to buy or sell it at a certain price within a certain time. To make money on the option, you can hold onto it until maturity and then exercise it (anticipating it's worth more than the strke price). Or you can offload the option prior to the expiration date (assuming the value of the option itself has risen above what you paid for it).

Discuss It!

top dissertation writing services reviews said:

I would like to share my details with all the online stock trading services. Those are really helpful to all the new essay editors and online trading experts and they should try to develop the market also.||| said:

I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts.

192.168.o.1 said:

I havenât any word to appreciate this post.....Really i am impressed from this post....the person who create this post it was a great human..thanks for shared this with us.

http://how-rich.org/net-worth/tag/jan-leeming/ said:

Really welcome this awesome post you have suited us.Thanks a ton for getting a charge out of this hulk article with me.

1991 mustang car covers said:

You're merely buying the right to buy or sell it at a certain price within a certain time. To make money on the option.

Accountants Crawley said:

These websites are really needed, you can learn a lot.

custom signs florida said:

I really like your writing style, great information, thankyou for posting.

Language of desire said:

It is very good, but look at the information at this address.

followers instagram gratis | free likes on instagram said:

in any case you can inspire your clients to present their own photographs of your things being used.

cheapest cable said:

Online trading is quite common in any of the field now. The same has resulted in some really important changes in the field of stock trading as well. Online stocks are getting so much popularity among the investors and the process is quite simpler than the usual ideas.

Pavimenti in parquet a bagheria said:

Your texts on this subject are correct, see how I wrote this site is really very good.

icos said:

There you can download for free, see the first of these data.

Domino99 said:

It is rather very good, nevertheless glance at the data with this handle.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Investing Glossary - M


read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com