Options Trading Basics – Intrinsic and Time Value
An option premium or price is made up of two components time value and intrinsic value. Since options are time sensitive, the time value component of an option contract erodes to zero as the expiration date approaches. If an option is “In the Money” the premium will also reflect an intrinsic value. This is the real value of the option that is determined by the difference between the option strike price and the price of the underlying security.Options Trading Basics – Option Settlement
How an option is settled will depend of a two factors, cash settlement or physical settlement. Remember that an option contract represents a right or an obligation between two parties.Forex Trading: Start Small And Make As Much As You Want
I know starting to trade the currency markets can be daunting with big numbers being made every day. It’s a tough market where you can make (or lose) a lot of money very quickly. Sometimes you feel like you can’t participate in the market as you just don’t have big amounts of cash.
Foreign exchange market as the biggest financial market in the world attracts so many people in the world to join the crowd in their adventure to find gold mines in the market. However, it is not as easy as we think. To be successful in foreign exchange market we need a set of tools as our weapons.Learning About Trading Online
Stock traders have always sought knowledge in order to become successful. While tradition dictates that Wall Street and business school are still the main source, online trading education is slowly becoming more popular.