Binary options are a risky trading strategy. Often compared to gambling, they can involve a lot of risk for traders who do not understand them and it is easy to take the binary options market for granted, sometimes losing the farm in the process. That does not mean they do not have any value though. … Continue reading Binary Options, Forex, and You
Investors take two types of positions with an options contract: outright and complex. An outright is when you purchase the contract on its own; your position begins and ends with itself. A complex position is built out of multiple trades and assets and, while they are less common than outrights, they are also where some … Continue reading Understanding the Direction of a Spread
As the Best Choice blog has explained in the past, one of the most valuable uses of derivatives (like an option contract) is securing other assets. Retailers, for example, use the futures market to stabilize prices over the long term, while investors can use options as a hedge against market instability. By taking advantage of … Continue reading What’s a Protective Collar, and When Should You Use It?