Commodity trading software – For a man with only $275, a gain of $385 is handsome.
Now, if the market had backed off instead, and Chrysler had dropped, say, to 54, the option would simply be allowed to lapse. So, we would be out the $275 we had put up, but on the other hand, anyone who had bought at 56*6 would have a paper loss of $250, too. Let’s say, instead, that we’d bought the put in Royal Dutch for six months at 43¼. This would cost $350. The objective here, of course, would be a drop in price. If at any point Royal Dutch slumped, say, to 35, we would exercise our option, sell to the dealer at 43¼, and acquire the stock for delivery by asking our broker to buy at 35.
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commodity trading systems
[tags]Commodity Market Trading[/tags]
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