Commodity Options Trading: An Introduction to Commodity Options

Brief History Although, option trading was known to the traders for couple of decades in the past but commodity options trading contracts were introduced by the recognized exchanges only during early 1990s. Over the last 20-30 years commodity options trading has gained tremendous popularity because of its distinct features and immense potential of generating high yield at lower costs and negligible margins. Quintessence of Option explained In financial lingo, an option is defined as a financial instrument that confers a right without obligation to execute a transaction on the underlying futures contract or a ...

Understanding Foreign Currency Exchange Transactions

Today’s currency exchange business transactions are enhanced by modern technology. Private foreign exchange companies and other financial institutions are perfecting their system to give excellent service to clients. This improvement has benefited both local and internal clients in their every business dealing. Foreign exchange students and school administrators alike are thankful to some foreign exchange companies for making their business dealings more convenient. Students from other countries no longer worry in the currency exchange dealings because they can get reliable information, like the real-time rates, before ...

Fundamentals of Commodity Option Trading

Commodity option trading is an excellent risk management tool for different segments of industry participants. Besides the hedging of profit and loss, commodity option trading is widely recognized as an excellent tool for speculative profits. Here’s a list of basic set of jargons used in commodity options. Options It is a contract to buy or sell an underlying asset at a certain price on or before a given future date. There are basically two types of options in commodity option trading. Call Options and Put Options. Call Options Call Options give the buyer the right but not the obligation to buy an underlying ...