Trading strategies of options and futures


Trading strategies of options and futures, futures contracts try to predict what the value of an index or commodity will be at some date in the future. Speculators in the futures market can use different strategies to take advantage of rising and declining prices. Find 25 proven strategies to use in trading options on futures. Examples include butterflies, straddles, back spreads and conversions.

Each strategy includes an illustration of the effect of time decay on the total option premium.Options on futures rank among our most versatile risk management tools, and we offer them on most of our products. Whether you trade options for purposes of hedging or speculating, you can limit your risk to the amount you paid up-front for the option while maintaining your exposure to beneficial price movements.Read the Brochure.

The main idea behind these futures trading strategies is based on the investors having no hold on the commodities they are trading in. Instead, a contract is signed and both buyer and sellers hold on to the contract. Because the contracts are bound to be cancelled, most dealers often do this for their convenience optiosn the aim of making a profit. In dealing with strategise trading strategied, investors use speculation on the trend of whether the commodity price will fall or rise, and this will determine the likelihood of investors gaining from such ventures.

This type of futures trading strategies takes physical commodities, bonds and stocks. The main stakeholders in future trading strategies are the hedgers and speculators.




Trading strategies of options and futures

Trading strategies of options and futures