Trader's Perception in Futures and Options
All Futures and options trading strategies
LONG POSITION
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SHORT POSITION
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You make money when price goes up.
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You make money when price goes down.
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You buy an instrument at lower price, which you predict to go up. Then you sell at higher price, if you made expected profit.
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You borrow an instrument from broker and sell it, which you predict to go down. Then buy the same instrument to clear/level the account with the broker.
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Buy Futures of the Index, Buy Call (CE) options of the Index, Sell Put (PE) options of the Index
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Sell Futures of the Index, Sell Call (CE) options of the Index, Buy Put (PE) options of the Index
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Buy a stock, Buy Futures of the stock, Buy Call (CE) of the stock, or Sell Put (PE) of the stock
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Sell a stock, Sell Futures of the stock, Sell Call (CE) of the stock, or Buy Put (PE) of the stock
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You Buy the Futures, Buy Call (CE) options, and Sell PUT(PE) when price goes upwards in fast manner.
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You Sell the Futures, Sell Call (CE) options, and Buy PUT(PE) when price goes downwards in fast manner.
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When price do not change much, then Sell OTM Call (CE) in Options segment
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When price do not change much, then Sell OTM Put (PE) in Options segment
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