Rolling Spot Forex Definition – The Immediate Nature of the Forex Spot Market

March 3, 2012 by  
Filed under Forex Trading

Often times peoples expectations about financial markets can lead to frustration if and when they decide to take the plunge and test the waters of a trading market in particular. For many people it is somewhat surprising that the securities transactions you want to do are not immediate. The standard stock market operator does not usually offers such a quick response. This type of reaction is usually immediate preview of a spot market.

While certain securities and commodities are traded on a spot market the most popular of all the spot markets is Spot Forex. So  is the question many have is, what is a spot market ? A spot forex trade involves either buying or selling a forex pair at a current rate. This involves a direct exchange between to currencies. Such transactions involve cash as opposed to a contracts and interest is not included upon the agreed transaction. Should you keep positions open you need to get into these pairs.

From another perspective – The current definition of a spot market is a market where you buy goods or cash, and sell immediately. As with the stock market, you may want to buy or sell a particular action once they have placed in the order in which brokerage firm, is a certain amount of time it takes to execute the purchase or sale. During this time, the value of the stock could go up or down and these movements could dramatically affect the profitability of their operation.

Rolling Spot Forex Spot Forex Market is a horse of a different color. Spot Forex market is somewhat misleading, because that is the only market rate quoted on currency. This means that if you see a profit potential in a currency that link and you want to enter before price changes, all you need do is buy the pairing. Once you submit the order, your transaction will be immediately executed. On the contrary if the trade goes south in a hurry, you can stop the trade as soon as you entered.

Spot forex trading is done electronically. This is convenient and necessary. Convenient, because you can perform operations on your computer virtually anywhere, anytime, day or night, it is necessary, because the Forex market has no central trading floor to speak of. It is a 24-hour a day market. Regardless of why the spot Forex market is the way it is, the immediacy of this particular market is what makes it so appealing and so very popular. Rolling Spot Forex Definition

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Uncovered Option Trading Is Not Allowed – The Basics of Investing Made Simple

September 1, 2010 by  
Filed under Option Trading

Uncovered Option Trading Is Not Allowed
When you’re ready to start investing and/or trading the first thing you will need to do is open an account. The first step is to decide on a brokerage firm. There are three different levels of brokerage firms. Uncovered Option Trading Is Not Allowed
Full-service brokers
Discount brokers
Online brokers
Full-service brokers charge higher commissions, but offer more services. They are the preferred broker for people who don’t have the time or the desire to do their own research and place their own trades.
Discount brokers charge lower commissions, but have fewer services to offer. They do not offer personalized investing advice. They are preferred by people that like to do their own research and place their own trades.
Online brokers are similar to discount brokers except they offer no brick and mortar locations (Web access only).
Next you will need to decide on what type of account you want to open. Here are a few types of accounts:
Cash & Margin
Cash, Margin & Option
Cash Account: This is the most common account. Securities (Stocks, ETFs, and Mutual Funds) must be paid in full at time of purchase.
Cash & Margin: To trade on margin you have to request margin approval. The broker will lend you a portion of the purchase price. The loan is collateralized by the securities and cash. If the value of the stock drops by a pre-determined amount, you will be asked to deposit more cash or sell a portion of the stock.
Cash, Margin & Option: To trade options you have to request options approval. Options strategies will also require margin. An option contract is a financial derivative bought by one party (option holder) and sold by another party (option writer). Completing an options agreement will require more information than for a cash account.
Here are the typical questions on most options agreements:
Years of investment experience
Years of options experience
Funds available for options trading
Average transaction size
Number of transactions per year
Types of transactions (Stocks, Options, etc. )
What are your investment objectives? (Note: If you want to trade options, speculation should be one of the boxes you check. )
What type of activity do you plan to conduct in your options account? (Note: Check all boxes, i. e. buy options, write covered options, create spreads, write uncovered options, etc. )
Most brokers will not allow options trading in an IRA (Individual Retirement Account), but there are some brokers that will allow it. Uncovered options strategies are not allowed in an IRA. Uncovered Option Trading Is Not Allowed
Attitude and Risk Tolerance
Successful investors/traders must have a positive attitude and a strong will to succeed. When learning to invest it is easy to get discouraged and quit. Most successful investors/traders have had multiple failures along the way. I don’t want that to happen to you! This article was created to give you an edge that most people didn’t have when they started investing.
To be successful, you must have:
The right education
The right tools
The right attitude
If you have already been struggling in the stock market, go back and reexamine your prior trades and identify the problem area. One of the biggest mistakes new traders make is risking money they can’t afford to lose. They invest car payment money or rent money in the stock market, hoping they will double the money in a matter of hours to days. . . solving all financial problems. This crosses the line into gambling not investing.
The stock market has a proven track record of being a good place to invest money over the long term. The biggest enemy for most investors is emotion. When stocks are losing value and emotions kick in it’s hard to make good decisions. Being indecisive and doing nothing is the worst possible thing to do. Managing risk in a trade helps take the emotion out of investing.
Understanding that getting into a good stock doesn’t happen by accident. It takes research and patience to find good company’s to invest in.
To determine your risk tolerance, which in turn will determine your trading style ask yourself the following questions:
How much am I willing to lose on any one trade without becoming emotional?
Do I feel more comfortable buying and holding stocks for only short periods of time or do I like to buy and hold stocks for the long-term?
Are the fundamentals of a stock or the chart of a stock more important to me?
Do I like taking risk?
Can I respond to news on my stocks if it impacts the chart or fundamentals?
Matching strategies with your personality and trading style is extremely important. You must identify your strengths and weaknesses in order to develop your trading style around them. Uncovered Option Trading Is Not Allowed

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What is the best brokerage firm for sophisticated stock option trading strategies?

September 1, 2010 by  
Filed under Option Trading

Scottrade is not, IMO. I like it? Ao? R only those who have used brokerage for things like spreads, straddles, c? Condors, etcPor Please explain qu? think is the best? ? Is the order entry, cost, reputation, use, support, etc? If E * Trade, once and not return.

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