Risk of Commodity Futures Trading
 
www.commodity-trading-etc.com    

Risk Factor: Options Vs. Futures



Do options carry less risk than futures?

Not necessarily.

If you plan to trade through an individual account and are considering trading options on futures contracts, you should familiarize yourself with the types of options (puts or calls) that you contemplate trading and the risks associated with each.

You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.

You should also understand that certain market conditions (such as lack of liquidity), market rules, or the pricing relationships between the underlying interest and the option may increase risk.

Discuss it, Make a comment  |  Bulletin Board

[reply]POST A COMMENT

Comments from our visitors: buffer stock schemes commodity trading questions    market down for sixth day commodity trading tips    commodity trading tips higher output expected in jeera 23    tsx up as commodity prices rise u s earnings impress    balance transfer credit cards the bottom line is    arch coal patriot coal upgraded at citigroup at marketwatch    commodity trading tips turmeric becomes margin victim 13    asian stocks gain on commodity prices yen cnooc canon rise    commodity etf    cybernetic trading strategies developing a profitable trading    asian commodity stocks fall this week while carmakers advance    commodity forex trading - hartly fire forex    commodity day trading stock option    us stocks-wall st falls on financial commodity shares reuters via yahoo philippines news    the handbook of commodity spreads currency trading exchange guide    commodity options - king we need to weigh our options to fight    gold forex trading can be a deadly combo - commodity online    want to know? why online forex trading is attractive? insider    commodity trading maritime training centre    london close commodity slide hits footsie sharecast    commodity trading questions blog archive i need help with this    commodity trading tips turmeric falls on profit taking bullish    need a tool a chart or a calendar to keep track of commodity    investors look to manage their futures financial times    what online stock brokers allow day-trading without a minimum?    head of major exchange worries about sec cftc ?harmonizing    free agri commodity tips    starting a forex fund currency trading articles forex ea    commodity trading questions blog archive economic crisis 2008    currency forex learn online trading excellent ways to learn

PLEASE NOTE: The following topics may also be of interest to you:

Commodities TOC |  Online Trading |  Futures Trading |  Forex Trading

      Subscribe To This Blog
Get Free email updates

Post To Blog

Site map - Copyright © 2010 www.commodity-trading-etc.com