Thursday, July 19, 2007

Learning The Basics About Trading Forex And Options

Aside from stock trading, perhaps two of the more popular trading instruments in the financial market today are options and foreign exchange.

The two are separate entities in that forex involves soley currencies, while options can represent a variety of stock representations. Also, forex are bought and traded freely in the market, while options are usually given as rewards and compensations boosters for executives are exercised under a pre-determined rate and time frame.

Forex trading

Forex trading, short for foreign exchange trading, involves the buying and selling of the many currencies of the world. It does not operate via a central exchange site, like traditional stock market trading, and may, thus, fully function a 24-hour basis. Read more

Options trading

There are two forms of options: the call option and the put option. If you buy a call option, you are expecting your stock price to go up and you would prefer the put option if you expect the opposite, meaning you expect prices of your stock to decline. Read more

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