Thursday, March 4, 2010

options trading

Almost all know that share market or trade is the only place where one will face sudden unexpected ups and downs. Almost daily people would have heard about the daily sensex in the share market. It all depends on the current price of mandatory items like gold, silver, petrol, diesel etc. Suddenly there will be hike in the mentioned items and all of a sudden there will be a fall. So one who is well versed in this field can only shine here. As far as share market is concerned there are only a few people who are victorious and almost the rest will be shattered. So there a few factors to be kept in mind in trading called options trading. There are various strategies implemented inorder to be successful in the share market. The strategies available can be classified as Bullish strategy, Bearish strategy and neutral strategy. Bearish strategy and bullish strategy are almost similar with some slight changes. Whereas these non directional or neutral strategies are employed in places where the buyer or seller does not know when the market price will increase or decrease. In such cases neutral strategies are best suited which can give a neutral idea considering all aspects. Risk reversal, strangle, straddle are some of the non directional or neutral trading strategies.

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