Broker Commodity Option Trading: Things to know before choosing your commodity broker

Commodity option trading can offer you an excellent diversification to your investment portfolio. Commodity broker is the most important link for commodity online option trading. Broker is not just an intermediary for order execution but an essential entity to steer successfully in the commodity trading markets. Taking a right decision for an ideal broker commodity option trading depends on many factors in addition to your personal needs and specifications. There are broadly two types of broker commodity option trading – discount brokers and full service brokers. Discount Brokers Professional commodity traders, day ...

Online Options Trading: A Powerful Strategy for Diversified Investment Portfolio

Online options trading in commodity, forex and stocks has advantages like high yield with low margins, low commissions, and risk hedging. Online options trading can be considered as an excellent tool to earn high returns especially when the markets are passing through a phase of high volatility. Online option trading can be done in a variety of ways by following dozens of commodity option strategies. Basic strategies: Plain vanilla strategy is the alternate name for basic trades in online option trading. It involves buying call or put option (Long Call or Long Put) and selling call or put (Short Call or Short Put). ...

Commodity Online Option Trading: Framework of Option Contracts

Commodity online option trading has provided an excellent tool to the hedgers and traders alike. In order to able to successful trader in commodity online option trading, it is essential to learn the intricacies of commodity options. This article tries to explain few more fundamental aspects on commodity options. Contracts Specification For commodity online option trading, you must understand the most important parameter known as contract specification or term sheet. Essentially speaking, any commodity options contract has four core components. Underlying commodity and its quantity, call or put, strike or exercise ...