What are derivatives? Can one trade in right offers on the floor of the Stock Exchange?
I want an explanation on stock market derivatives and strategies for growing one's potfolio.
Public Comments
- Try learning technical analysis. It's easier and works better.
- Derivatives are a variation of stocks. They are options for many stocks, options and commodities. They permit the trader to have the right, BUT NOT the obligation to purchase a particular stock, future of commodity at a particular price. They give traders "more bang for the buck." For about 15% to 20% of the price of the stock, commodity or future, the trader can control 100 shares - 1 contract. THE BIGGEST CHALLENGE: selecting the right option which gives the trader enough time for the trade to go imn the trader's favor. The sites: http://investopedia.com - is a free site. It has an excellent easy-to-understand financial dictionary! It also has a Virtual Trading platform. You don't need any money. This is for you to try different strategies, "tweak" your trading rules, sharpen your trading skills and to help relieve you of some of trading's edge - when you decide to go "LIVE" - in the market with your hard-earned money. http://finance.yahoo.com - another free, great site for getting news and different information you will need. Both yahoo finance & investopedia are recognized as "Featured Knowledge Partners" of Yahoo! Answers. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
- Derived from something, for example in a gold derivative contract the agreement between two persons to buy/sell gold in a decided price and in a decided date in future,
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