Posts Tagged ‘short’
There are two option for term of trading, short term trading and long term trading. In fact, there are many traders who still consider options and warrants to be long term trading markets, but options can even be traded in short term trading. You should know that short term trading option is not dramatically different from trading in any other market but there are a couple of options specifics that need to be taken into account. Short term trading should not be confused with day trading, where stocks are bought and sold within the span of one trading day.
An option of trading is a strategy that does not depend on the market direction, in fact it does well in volatile markets. With options trading there are two methods through which you can enter a long trade and short term trade. While a long fundamental trade can be entered either by buying a call or by selling a put, a short underlying trade can be entered either by buying a put or by selling a call. Read the rest of this entry »