Archive for April 2010

Forex Options Trading – What is a Forex Call and Put Option?

What is a Forex Call Option?A forex option gives you the right but not the obligation to buy or sell a currency pair at a certain price on a certain date. The certain price in this case is called the ’strike price’. That is the option gives you the flexibility of choosing where you want [...]

Option Trading – Developing An Option Trading System

There are 2 kinds of option trading systems in general; Discretionary and Mechanical. A discretionary option trader follows no specific rules but chooses, enters and exits an option trade using all of his knowledge or gut feeling. A mechanical option trader is one who translates his knowledge of choosing stocks, entry and exit into objective [...]

How to Use Options Trading Rolling Strategy

An options trading rolling strategy is a strategy where you move your strike point to a new strike point during the month. Rolling basically means moving. In the world of options trading, this movement happens when you move positions from one strike point to another. That can either happen when you move points vertically (within [...]

Demystifying Options Trading – Call Options Explained For Everyone

When it comes to options trading, most people have been mystified by what seems like a lot of mumbo jumbo. This article will explain the investment terminology for Call Option in everyday terms that anyone can understand and appreciate.To illustrate the concepts, let’s go on a shopping trip.You’ve been thinking about buying a MacBook Air, [...]

Options Trading and Technical Analysis

Recently, almost no options trading seminar is without some mention or introduction to technical analysis. In fact, almost all of the options trading blogs out there in the internet use technical analysis as their main basis of decision making. Why is that so? Why is options trading so closely related to technical analysis now?In order [...]