commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/strike.html
Stock and Commodity Trading. In options, the strike price is the pre-determined price at which the option may be exercised. Strike price is also known as the exercise price. Strike is the price at which an option begins to have a settlement value at expiration. The strike price is set at the time the option contract originates. Strike Price and Option Premium. The longer the time to expiration of a call or put option, the larger the time value. This is because, with lots of time until expiration, the...
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/stop.html
Stock and Commodity Trading. Entering a new position:. Attempting to Limit Losses. Return to Commodity Option Training. History of commodity markets.
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/history.html
Stock and Commodity Trading. Why commodity markets were started. The first recorded instance of futures trading occurred with rice in 17th Century Japan. There is some evidence that there may also have been rice futures traded in China as long as 6,000 years ago. The various exchanges are constantly looking for new products on which to trade futures. Very few of the new markets they try survive and grow into viable trading vehicles. Some examples of less than successful markets attempted in recen...
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/fundamental.html
Stock and Commodity Trading. Fundamental analysis is the study of the factors that affect supply and demand. The key to fundamental analysis is to gather and interpret this information and then to act before this information is incorporated into the futures price. This lag time between an event and its resulting market response presents a trading opportunity for the fundamentalist. Food and Agricultural Commodities. Financial and Currency trading. This category includes mainly crude oil, heating oil, nat...
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/supply&demand.html
Stock and Commodity Trading. Law of Supply and Demand. This is the discipline of the marketplace. Those who produce things that consumers are willing and able to buy are rewarded. Those who produce things that consumers don t want or can t buy are penalized. Farmers must produce for the markets. They cannot expect to find or create a profitable market for whatever they choose to produce. How Supply and Demand determine Commodities Market Prices. Likewise a shift in demand due to changing consumer prefere...
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/limit.html
Stock and Commodity Trading. A limit order is like a market order with one exception, price takes the highest priority. For limit buy orders, the customer includes, along with the type and quantity of futures contracts to purchase, a maximum price to pay for the contracts. A customer will use a limit buy order if they desire to buy the futures contract, but want to pay no more than a specified price - the limit price. Return to Commodity Option Training. History of commodity markets.
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/spreads.html
Stock and Commodity Trading. Commodity spreads measure the price difference between two different contracts, usually futures contracts. Spreads can also measure the difference between a cash contract and a futures contract (referred to as the basis) or the price difference between two option contracts, or various combinations of the above. For the purpose of this section you will examine spreads from the context of the price difference between two different futures contracts. (See figure).
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/call.html
Stock and Commodity Trading. What is a Call Option? The key purpose of buying options is that they make it possible to speculate on increasing or decreasing futures prices with a manageable risk. The maximum loss to the buyer of an option is the cost of purchasing the option (known as the option "premium") plus transaction costs. The seller of a call option receives the option premium but, in return, must sell the underlying interest to the option holder if the holder exercises the option. Options are li...
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/volatility.html
Stock and Commodity Trading. Volatility can be a very important factor in deciding what kind of options to buy or sell. Volatility shows the investor the range that an assets price has fluctuated in a certain period. The official mathematical value of volatility is denoted as "the annualized standard deviation of a asset s daily price changes.". Return to Commodity Option Training. History of commodity markets.
commodity-option-training.com
Commodity & Option Basic Training
http://commodity-option-training.com/market.html
Stock and Commodity Trading. My account # is 12345 and I want to Buy 1 May Corn at the market. (This would enable you to go Long at the market, or exit a short position. You could also use this order to Sell 1 May Corn at the market also and go Short or exit a long position.). Market on Open (MOO). As the name implies, this order will be executed on the market open within the opening range. This trade is used to enter a new trade, or exit an open trade. Market on Close (MOC). History of commodity markets.