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Finance

5 Trading Options Strategies

Many new traders jump into trading options without having a proper understanding of effective strategies to trade options. Luckily, there are lots of strategies out there that can be very helpful in limiting the risk factor and increase the profit rate. As a newbie in options trading, you ought to learn how your little effort can help you take advantage of the power and flexibility that come with this type of trading.

Here we have put together some useful strategies for trading options that are not only useful for you to shorten the learning bend but also are effective guide to walk in the right direction.

  1. Married Put Strategy – This strategy allows you to buy an asset, such as shares of stock, and simultaneously buy put options for an equal number of shares. Holding a put option will give you the right to sell the shares of stock at the strike price while each contract’s value is equivalent to 100 shares. With Married Put strategy, you can protect your downside risk when having a stock as this strategy works like an insurance police and makes a price floor for the stock’s price to fall sharply.  The only drawback of married put strategy is that if the stock doesn’t fall, you will lose the premium that you paid for the put option.
  2. Covered Call – With covered call strategy, you can purchase a naked call option and structure a basic call together. Covered call enables you to make money and reduce the risk of a particular stock being long alone. Here, the trade is done when you are willing to sell your shares of stock at a short strike price. To use covered call strategy, you will buy the underlying stock and simultaneously sell (or write) a call option on the same shares. You can use covered call strategy when you have a short position in the stock and a nonaligned view on its direction. This can also help you gain profit by selling the call premium or protecting the asset against a potential decline in the price value of the underlying stock.  
  3. Protective Collar – You can execute this strategy by buying an out-of-the-money or OTM put option and selling or writing an OTM call option for the latter with the same expiration date simultaneously. Investors mainly use this strategy when they see a long position in a particular stock is gaining substantial profits. This also helps them to have downside protection as well as the trade being obligated to sell shares at the higher price.
  4. Long Straddle – This strategy is used when you buy a put option and a call option on the same underlying asset at the same strike price and expiration date at the same time. You can always use this strategy when you believe that the value of the underlying asset will considerably move out of a range, but are not sure of which direction it will move to. With long straddle, you get the opportunity to get unlimited gain theoretically and limit the maximum loss to the cost that you paid for the combination of both the options contracts.

Trading strategies are meant to help traders trade options the way they feel is easy for them to gain profits.  GigaFX doubles the pleasure of a fruitful trade when you execute a tradeoff through its platform as this not only has a user-friendly interface for traders but also all the tools you will need to make a trade successful. 

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Finance

THE TOP 10 FOREX BROKERS – EXNESS – THE BEST ECN BROKER

Following 2 years of trading at Exness, huge numbers of my companions and new traders have made inquiries like “Is Exness a decent agent?”, “Is Exness reliable?”, “Is Exness a scammer?” et cetera. Today I’ll rapidly investigate Exness and demonstrate to you why I and different dealers love trading with Exness with the end goal to give you a superior comprehension on this representative.

Read full Exness reviews 2019.

Clearly, all brokers have their solid and frail sides. The main way you could state a broker is great or not is to reflect its conditions and attributes, which are reasonable for your trading strategy. As I would like to think, Exness, as the top 10 forex broker is an exceptionally trust-commendable broker. Experienced traders really appreciate trading at the biggest broker like Exness more than starters, since it gives them the best trading conditions they can’t discover anyplace else. Here are some for instance.

The fastest instant withdrawal system

In my point of view, instant withdrawal is the key component that makes Exness (forex intermediary) emerge. Moment withdrawal implies when you pull back your reserve or exchange cash, it just takes milliseconds to finish the undertaking. In what manner or capacity? Since Exness leaves that activity to the machines, so it is path quicker than human. Contrasted with different facilitates, Exness’ withdrawal speed is the quickest. You can attempt withdrawing at Exness, the biggest broker and other brokers to see it for yourself. The thing that matters is noteworthy. This is one of the fundamental reasons why brokers choose to exchange at Exness.

Exness Accounts

BRKV – Exness Forex brokers has four different accounts, which are Cent, Mini, Classic and ECN. They are the best ECN brokers. Your trading strategy will need an account that suite. The Mini and Cent account is the best for practicing as it requires the minimum deposit of $1.

Customer support service of Exness

Exness is among top 10 forex brokers that provide the best service of 24/7 customer care. While other brokers mainly support English, Eness has customer care office in different nations reflects their language, such as China, Thailand, Bahasa Malaysia, Vietnam and Persia. Trader are comfortable trading with Exness even they cannot speak English.  Besides, the report of Exness are audit by the leading audit company, Deloitte. So, their information posted on the websites are reliable.

The Exness spread – the lowest

Exness offer the most minimal spread in the Forex market. a settled spread of a currency pairs is traded at the most minimal spread that no broker can beat. Next to, as the best ECN broker, Exness’ spreads are additionally the least with respect to the 6 most exchanging currency pairs. The spreads of Exness are accessible here.

The highest leverage

While being the best ECN broker, Exness offers the conceivable most astounding leverage, in such, up to boundless. The tenderfoots and new brokers think about this high leverage as dangers. In the interim, the experience ones trust this use as sheltered trade. For instance, while two traders have a similar order sizes and deposit amount, the one with higher leverage is more secure. In the other hand, boundless leverage offer the free charge for margin. Your order of boundless leverage can be kept for nothing.

By and large, as the best 10 Forex merchant, Exness is the dependable agent furnishing brokers with the best exchanging condition.

Check out Exness social trading feature now.