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Wednesday, 23 August 13:29 (GMT -05:00)



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.

 

 

 

You are free to discuss this article here:   forum for traders and investors

 

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Bitcoin Sets New All-time High, Experts Predict Market Crash

Bitcoin is reported to have set another all-time high. In particular, the exchange rate exceeded $4000 per 1BTC. At the same time, more and more experts start predicting another crash in the Bitcoin market.
 

 

For those of you who don’t know, since early August, Bitcoin has already gained 60%. Which is even more amazing, the world’s number-one cryptocurrency has quadrupled in value since early 2017.
Publication date: 21 August 02:19 AM

Dukascopy Bank on Bitcoin Future after Bitcoin Split

On August 1st, 2017, the entire world of cryptocurrencies changed. The thing is that from now on, there are 2 forks of the world’s first and most popular cryptocurrency, which also enjoys the biggest market capitalization among its peers. We are talking about Bitcoin (BTC) and Bitcoin Cash (BCC). The split was followed by increased market volatility for both currencies, which was mostly of technical nature caused by the circulation of Bitcoin Cash rather than the classic supply and demand, experts say.

Publication date: 15 August 09:11 AM

Masterforex-V VIP Traders’ Performance. July 2017

The unbeatable FX strategies mentioned in a brand new book on the secrets of Forex investing by Masterforex-V keep on making both traders and investors richer. By the way, the yield in this case is way bigger than the one you can get by investing in bank deposits or any related low-income investments. The very essence of this kind of investing makes it possible to avoid poor and hasty decisions, thereby leveraging the entire process. By the way, VIP accounts have been among the top 10 accounts available for auto-copying at pro-rebate.com.

Publication date: 09 August 05:33 AM

UK Ready to Pay 40 Billion Euro for Brexit

The international expert community along with mass media keep on trying to evaluate the cost of the Brexit for the United Kingdom. The most popular version is that quitting the European Union will cost Great Britain around 40 billion euros. In particular, this idea is advocated by Deutsche Welle.

 

 
At the same time, The Sunday Telegraph claims that the specifics of the financial compensation to Brussels will become the catalyst for the Brexit talks. While referring to the high-ranking sources in the British government, The Sunday Telegraph reports that the government is ready to pay the EU up to 36 billion pounds, which is around 40 billion euros. This is the sum is intended to cover the UK’s financial liabilities to Brussels.
Publication date: 08 August 09:29 AM

Masterforex-V Expo Names World’s Best Brokers for Beginners in July 2017

Along with required knowledge and skills, the broker makes up the lion’s share of the trader’s success in the Forex market. That’s why choosing the right broker right off the bat is so important.

 

At the same time, most of the traders joining Forex to start making money often lack the required experience to make the right choice. On top of that, most of them are convinced that all the brokers are the same, which is why they ignore the significance of making the right choice and make this choice randomly.
Publication date: 08 August 03:54 AM

Bitcoin Exceeds $3300 Threshold

Bitcoin, which is the world’s first and most popular crypto-currency, started another strong rally a few days after it was split into 2 versions. According to Coindesk, the classic version of Bitcoin exceeded the $3300 threshold and set another all-time high at $3319. The thing is that the market capitalization of Bitcoin has been growing continuously ever since the mentioned split.

 

 
Publication date: 06 August 11:48 AM

Continuous Rally Shown By Crypto Currencies As Investment Opportunities

The phenomenal growth seen in crypto currency markets has become one of the leading tendencies of the year. Some of the crypto currencies have seen their value grow by 100%, 200% and even more. As for Bitcoin, which is the world’s first and most popular crypto currency, back in January 2017, it cost $1000 while in early July it cost over $2600.

Publication date: 29 July 01:00 AM

Alpari Increases Trading Turnover Up To $600,9 Billion In 6 Months

The international FX industry has recently been involved in a number of scandals. Against this background, we can only name a few companies with positive dynamics, efficient market products, and major license.

Publication date: 27 July 01:18 AM

Another Bitcoin Fraud Is Caught

Crypto currencies are controversial. On the on hand they give investors a decent investment opportunity. On the other hand, the may be way too risky. Often times, those are both market and even non-market risks, including fraud.

 

 
In some of the previous articles, we recommended you to start with a sound financial strategy and risk management before you invest even a penny in crypto currencies. We are not trying to say that those are bad investments. They can make you money if you really know what you are doing. However, you should be really careful about it since the advantages of decentralized and anonymous currencies may turn into disadvantages and loses for your wallet.
Publication date: 23 July 12:25 PM

Will European Parliament Help IronFX Victims?

Europe’s leading financial regulators have recently been founding them involved in various scandals. TheFinancial Conduct Authority (FCA) from the UK and the CySEC from Cyprus are some of them. The truth is, while those companies claim that they defend the customer’ rights, in reality they often take the broker’s side even though the broker may be playing dirty tricks on the customer.
Publication date: 20 July 03:19 AM