Options on futures are a kind of contract that gives an investor the right to buy or sell futures at a specific price in a specific period. Options on futures, therefore, layer the "optionality" of ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Option margin is the collateral (cash or securities) an investor must deposit before writing or selling options ...
Options are short-term securities. The expiration date for most options can range from a few days to a few months. So, investors must make a decision towards the end of the options contract. If you ...
In the financial world, options come in one of two flavors: calls and puts. The way that calls and puts function is actually ...
Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...
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Options that have an exercise price which may fluctuate above or below market value at performance options in that the exercise price of indexed options typically remains variable until the option is ...
Derivative contracts were born because of people’s innate desire to circumvent uncertainty. A derivative contract is a contract drawn up between two parties, the price of which is derived based on an ...
Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our ...