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Foreign exchange market

Options: Introduction To Trading Horizontal Spreads On Seasonality

Options: Introduction To Trading Horizontal Spreads On Seasonality

 

 

In the previous article we told you about the idea of trading options on commodity futures with the help of calendar strategies. In brief, commodity futures are influenced by seasonal factors.
 

 

 

 

 

 

However, using calendar spreads in futures trading is attended with the same unpleasant issues like the necessity to trade the given asset directly, with placing stop-loss orders etc.
 
Fortunately, we came up with the idea of trading options instead of futures. Indeed, trading options with the help of calendar strategies is another story as compared to futures spreads. Moreover, some positive factors connected with seasonality can be inherited by option trading strategies, i.e. seasonal appreciation of one contract against the other, which gives option spreads another competitive edge. Once the seasonal factors fail, we are defended by time decay, which is profitable in this case.
 
So, last time we (the Option Trading Department of Masterforex-V Academy) traded corn: a June option was sold while an August option was bought.
 
Let’s monitor the trade. The plan hasn’t worked so far as the seasonal downtrend is delayed (it should have started in early March).

 

 

 

 

The chart above indicates that the spread price has gone 10 points (or $500) up from the entry level.   Now let’s have a look at the riskrofile of our calendar spread (it consists of 4 sold and 4 purchased options):

 

 

 

 

 The paper loss is $200. Why is it a paper loss? If the price stays at this point at expiration, we will get some $2000 as a reward. If the seasonality does work, we will earn extra money.

 

 

 

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GBPUSD: U.S. Dollar Keeps on Gaining Value against British Pound after BOE’s MPC Meeting Minutes

 

The Bank of England has recently published its MPC meeting minutes. Despite the unanimous decisions made by the committee. some of the MPC members are already eager to consider tougher monetary policies for the Britsh central banks.

 

Publication date: 24 May 03:15 PM

NordFX Names Best Forex Signals in April 2015

 

The Forex market is definitely one of the best and most efficient ways of making money both for rookies and experts in financial markets. For instance, such outstanding opportunities to get a decent passive income are offered by a Forex company named NordFX, which belongs to the most reputable Forex companies in the global Forex brokerage industry.

Publication date: 24 May 02:29 PM

Forex – in What Way and How Much Investors Can Earn

 

These days work at the international currency market Forex is available practically to anyone, even without deep knowledge of finance or high starting capital.
 
This is mainly favoured by two factors: this trading ground is the largest around the globe by daily money turnover and, as a consequence, the most dynamical one. And the last factor “gives rise to” innovative technologies, which increases comfort, reliability, and safety of trade together with increase of gained profit.
 
Publication date: 21 May 02:08 PM

Forex-Market Lets You Get Real Cash From Demo Accounts

 

Have you ever wanted to give binary options a try without investing a penny? Well, Forex-Market is giving you such an opportunity. In particular, the company invites you to anticipate in an unprecedented trading contest where you can win real cash when demo-trading. It is called "A real profit from the virtual account». The winner of the contest gets $1000! Sounds great, doesn’t it?

Publication date: 20 May 02:29 PM

Masterforex-V EXPO Names Best Brokers for Auto-Copying in May 2015

 

As the financial crisis around the globe is building up again, more and more people have to lower their standards of living. People are desperately seeking extra sources of income. Most of them give up since they lack knowledge and expertise in looking for decent investments. Still, there are people who eventually find what they look for. I mean they eventually come to online investments. Investing in those who trade Forex professionally has become one of the best ways to generate truly stellar profits within a relatively short period of time.

Publication date: 20 May 01:23 PM

ActivTrades Gains Respect At MOSCOW FOREX EXPO

When it comes to telling reputable Forex brokers from fakes, experts recommend paying attention to the following factors:
- licenses by major financial regulators
- the company’s expertise
- prestigious awards
- client feedback
- participating in various prestigious Forex expo like MOSCOW FOREX EXPO, for example.

Publication date: 18 May 09:27 AM

Richard Perry from Hantec Markets: MOSCOW FOREX EXPO Was an Exciting Event!

 

Not so long ago, Russia hosted another major Forex event known as MOSCOW FOREX EXPO 2015. A lot of experts from around the globe left positive feedback regarding every single aspect of this exciting show. Indeed, this was an exciting event, Richard perry says. By the way, Richard Perry, is the leading expert in financial market for Hantec Markets. He was an active participant of this event.

Publication date: 14 May 05:21 PM

Roubini: USA Joins Currency War Because Of Strong Dollar

 

The USA is about to join the so-called currency war. It is just a matter of time, some experts believe. One of them is Nouriel Roubini, the famous professor of economics from New York  who predicted the latest global financial crisis.


In particular, he says that because of the current policies launched by Japan and the EU coupled with low oil prices the U.S. Dollar managed to gain a lot of strength against other currencies.

Publication date: 13 May 05:37 PM

45 Traders from Masterforex-V Academy Collectively Gain over 50 000 Points of Profit in April 2015!

 

The 3rd month of tests of the innovative auto-copying system by pro-rebate.com is now over. Now it is time to look at the updated stats for changes that took place over the reporting period.

 


According to pro-rebate.com  and Masterforex-V Academy, the 45 most successful traders managed to show the collective profit of more than 50 000 points! It is interesting to note that the TOP 10 collectively gained 34240 points or 68% of the overall profit. The traders rated 11- 20 gained 4084 points or 8% of the overall profit.

Publication date: 13 May 06:34 AM

Masterforex-V EXPO Names Best Forex Rebate Services in April 2015

 

For starters, let’s find out what rebate is. This is a system designed to give a part of the spread back to the trader. Indeed, this has become a crucial part of the contemporary Forex industry since any Forex trader who is pretty active in trading currencies can save a lot of money on spreads and other fees charged by Forex brokers. When you save money you also contribute to higher profit potential. Even if you a beak-even trader, you can still make money at the expense of rebates. The more active you are in trading, the more money you can actually save and the higher payout you will eventually get from the rebate service you use.

Publication date: 12 May 07:52 AM