Most Forex traders concentrate on six major currency pairs – The euro versus the US dollar (EUR/USD) accounts for 27% of the market the US dollar versus the Japanese yen (USD/JPY) makes up 13% of the market the British pound...

Module 16 – Forex Introduction The Forex market is an estimated nearly $4 trillion per day. In comparison, the New York Stock Exchange trades just $30 billion per day. In fact, Forex trading is more than the combined volume of...

Summary As you can see, options are very flexible. If you stick to strategies that only require buying options, then you are limiting your downside to the cost of the options, but not realizing all the benefits you can get from...

Straddle If you can’t decide whether to be a bullish or bearish, here’s a strategy for you. You do have to decide one thing and that is whether the stock is going to make a big move or stay in a small range of prices...

Stock Swap The alternative to taking a protective put when you have a winning stock position is called a stock swap. In this case, you sell your stocks for a profit, but also buy a call option for the same number of shares at the...

Spreads As mentioned in the previous module on futures, spreads are a strategy that involves two contracts, usually buying one and selling another. The contracts are related, the risk is limited, as is the reward, and you profit...

Covered Call One of the best-known options strategies, the covered call involves making money by selling call options on a stock you own. It’s a conservative strategy, and is not aimed at making a fortune but a regular 2%...

Strategies and Techniques Exercising American Options As I mentioned above, despite the fact you can exercise American options at any time, this doesn’t necessarily work out your advantage. In fact, the only time it seems...

If you’re talking options amongst other traders, the Greeks may well be mentioned. These are five variables which describe the pricing sensitivities, and they’re called the Greeks because they’re known by Greek...

Option Pricing Pricing options is more difficult than pricing futures because it involves a transaction that may not happen. In theory, the odds of profitability are built into the premium paid, but with variable rewards there is...