Bracket Orders (or OCO – One Cancels Other)

Overview We just launched Bracket Orders earlier this week. Let’s go over what they are and how they can help you. A bracket order can be used to limit your loss and lock in a profit by “bracketing” an order with two opposite-side orders. Through this order type, you can place three orders at one go:Read More

Introduction to Cover Orders

Introduction to Cover Orders A Cover Order is a special type of order through which the user can take an intra-day position and take advantage of extra exposure while being protected through a stop loss order. Here is how it works. The system will place two orders simultaneously: a market order and a corresponding stopRead More

Option Spreads – A Strategy to Reduce Your Margin and Risk

Option Spreads – Overview Introduction When we talk about options we used to discuss about the option premium either paying or receiving. When you are buying an option you have to just pay the premium. When you are selling an option, you have to pay the span and exposure margin associated with it. However, ifRead More

How Options Are Priced

Option Pricing – Overview When we deal with futures the value of a contract is what someone must pay to buy or what someone would receive to sell out of it. A futures contract has zero value at the start of the contract, but the value turns positive or negative as prices or rates change.Read More

Commodities 101: Introduction to Commodities

Introduction to commodities Due to the recent downturn in the global economy, it has resulted in lower sentiments for investors, especially in the emerging markets, which has left investors wondering whether investing in equities is a good decision or not. Investors have started exploring other investment opportunities apart from traditional investments. This article gives the userRead More

Importance of Delta Hedging in Options

Delta Hedging Introduction What is the meaning of risk in the stock markets? Risk is basically defined as loss of trading capital. This means losing money in trading. Option trading always termed as risky mainly because of the nature of stock and index options as they are highly leveraged and option trading risks can leadRead More

What are the benefits of options trading?

Options – The Basics What most people don’t know about options contracts is that they were originally created as a way to reduce risk of other investments. Therefore, it is bit odd that options now have such a bad reputation as being risky and a sure way to lose money. You can just as easilyRead More