Options – Futures – Risks and Advantages
The terms 'options' and 'futures' appear together often enough to confuse even knowledgeable traders into thinking they are the same thing. But, while they have important similarities, options and futures are distinct trading instruments. An option is a contract conferring the right to its buyer to purchase an underlying asset at a fixed price (the 'strike price'). The right - not the obligation. A futures contract, by contrast, obligates the buyer (the 'long position') to purchase and the seller (the 'short position') to deliver some asset by a set date. That underlying asset, in either case, can be a commodity (such as ...
Trader Psychology
Professional athletes are often told by their coaches that their attitudes on the field can affect whether they win or lose. That's even more true in Forex trading. It sounds like the standard motivational speech, but having the right frame of mind can definitely influence your trading results. There are many aspects of Forex trading that are outside the investor's control. Forex market participants number in the millions - traders for the world's largest banks, huge governments and individuals just like you. Unlike stocks, even the big traders have a tiny effect on exchange rates. Even when setting interest rates and other actions ...
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