Shorting
against the box is another type of hedge, but one which is used for very different reasons. It is basically the shorting
of an equal amount of the same stock in which you are currently
maintaining a long position. It is generally used as a delaying tactic either for tax or delivery
purposes. It puts your positions on hold. For example, if the long position
goes up 10 points, the short position goes down 10 points.
Shorting against the...
Share trading tips for beginners
In this article we have briefly explained about share trading tips for beginners. The safest bet, Which share should we select for trading and the serious mistake happens during trading are explained. Gives ideas about share trading tips for beginners for earning money from stock market.
Do you have to give up
your stock if the related calls go in the money? No, absolutely not. If the
underlying security reaches the striking price or...
The bull put spread example in Stock Market
The bull put spread example is explained in this article. Spreads are designed to take advantage of the price
relationship between two or more options. Bullish speculators use primarily
what are called "bull spreads" to reduce their risk. In the bull put spread example, the speculator buys and sells calls having the same (but not always)
expiration date. The striking price on the calls, however, will be different. In a bull spread, the call written
will...
Straddling meaning in Stock market
straddling meaning is explained including the break even point straddles. Hedging
means covering yourself in case your primary plans go afoul. Speculators and
investors use hedging to protect themselves when securities move in the
opposite direction from what they had hoped. In this article you will get the
detailed information about straddling meaning and playing effectively in
stocks using straddling.
Hedging a long position in stock...
Hedge Fund definition
Hedging
means covering yourself in case your primary plans go afoul. Speculators and
investors use hedging to protect themselves when securities move in the
opposite direction from what they had hoped. In this article you will get the
detailed information about hedge fund definition in Stock market and playing effectively in
stocks.
Hedging
is a form of insurance in investment games. In
some cases, hedges are designed simply to limit...
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