OPTIONS

Saturday, November 22, 2008

Free Trading Educational Videos You Should Not Miss

Previously, I have shared some free trading educational videos from trading experts. Unfortunately, now those videos are no longer available for free.However, don’t worry! The GOOD NEWS is that there are other 4 new FREE trading educational videos from another trading experts.One of them is even very valuable particularly for options traders!Learn from the following 4 new trading educational videos:1) THE ART OF MORPHING by Ron Ianieri (Duration: 90 Mins)For option traders, Ron Ianieri is well known as the co-founder & Chief Options Strategist...

Sunday, November 16, 2008

Limit Order

Limit Order is an order to buy or sell by setting the maximum price (for buy) or minimum price (for sell) at which you are willing to buy or sell.Hence, when you buy shares/options, you will not pay at any price higher than the limit you set, and it’s even possible for the order to get filled at a price lower than the stated limit.Similarly, when you sell shares/options, you will not receive at any price lower than the limit you set, and it’s also even possible for the order to get filled at a price higher than the stated limit.While Limit Order...

Saturday, November 8, 2008

Market Order

Market Order is an order to buy or sell immediately at the best available price in the market at that time.The advantage of Market Order is that it will guarantee an execution.However, the disadvantage of this order is that you cannot control the price at which your order will get executed (or filled), and hence you also won’t know at what price your order will eventually get filled.Typically, if you are going to buy shares/options, you will pay a price near the Ask Price. If you are going to sell shares/options, you will receive a price near the...

Sunday, November 2, 2008

Types of Orders in Trading

Before getting started to trade, a trader needs to get familiar with types and specification of orders in order to prevent from making unnecessary mistakes.Below is a list of a number of types of orders. I’m trying to organize them for easier understanding. We’ll discuss each of them further in the next posts.Too many types of orders may cause some confusion and lose of focus. Therefore, I also mark a few of very common types of orders in the list below with “***”.(Click the LINK in BLUE FONTS below to read the posts on each type of orders).For...