Posted by Admin on August 2nd, 2011 at 10:48 pm
What is a credit spread?
Investopedia says... "An options strategy where a high premium option is sold and a low premium option is bought on the exact same underlying security."
OK I know that is extremely vague, so lets see if I can do much better.
It is a trading technique in which you purchase an out of the money option at a certain strike price and then you sell an out of the funds choice at a diverse strike price of the same month. As time goes on the alternatives will decay in value an...
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Posted by Admin on August 1st, 2011 at 11:04 pm
Financial spread betting is a way of trading in which you deal with financial instruments without holding them directly. It is in a way, a leveraged investment which allows spread bettors to take a stance on the costs offered by the provider and predict the movements in the coming time. You can take lengthy and short positions on, in a wide variety of financial markets which includes stock, commodities, fixed income goods and currencies.
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