About The Differences of Long and Short Options Investment

Option contracts are subdivided into two main types e.g. calls and sales. We have a long call when we pay money for an option and when we receive money for this option to call soon. We have a long put option when we have to receive money of an option and also short put option is considered. As the market is divided into call and put option, to a better definition a call is understood that gives the investor the opportunity to purchase a title, or any other salable object (commodity, for example) a certain price for a period. How to call and put options are divided into a long and short, as a lighter and shorter, that is a long option the opposite of a short option as a long position is the opposite of a short put option sale. When the money is spent on a put or a call, we have a short and its opposite would be a long put option or a call for a long time where money is paid for a specific option.

Options bearings are used primarily develop in construction and property. Support options may also be applied to covered calls, and are used when you have a covered call position and you decide to buy the option and selling another option that has an attack or a different date of expiry different.


Talk About Investing: Single Stock Futures

Single Stock Futures (SSF) to enable investors to profit from bull and bear markets and protection against some of the lowest in its portfolio.

At SSF futures traded on individual stocks. Armed with a SSF handles the sale of purchase of the underlying stock at the end of his contract at an agreed price. Before being allowed to trade SSF, investors should maintain cash reserves in a trading account which is equivalent to 10% – 25% of the underlying asset. The margin requirement to negotiate a low SSF offers the opportunity for an investor to exchange the same number of shares that the investor is traditional, but less than one fifth of the cost compared to the stock of margin, which requires less money to trade SSF.

Therefore, the SSF release more resources for investment. Many market participants that trade SSF are simple. Buy or going “long” in an SSF if you expect the price of their participation in the fund appreciates. If the price goes down, then sell or “short” of the SSF.
The “up tick” rule allows investors to short circuit if the movement of stock prices in the past is “up”. Keep in mind, make a SSF trade is a purchase and sale transaction.