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Will Option trading help us in cash trading?

Monday, November 9, 2009 | Labels: , , | |

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Option trading is always ignored most of the cash trader. Some feel it as gambling, while most of them are afraid. This is quite common to all. I don't advise here that you start trading in Option trading. Option trading is serious but beautiful business. I want to catch your attention on different point.

Okay, you are away from Option trading. What ever be the reason?, but Do you know that Option also helps you in cash segment? Yes it is right what you are read. Option also helps one to trade in cash segment.

In market equity, future and Option all are inter depended on each one. They decide to each other. Value of future is depend on spot price of equity. Future got limited by both end by Option value. All those values are inter dependent.

Just watch and study the option trading. Do not change your segment of trading. Remain in cash segment. Option give you ideas of both end of any stock. Option gives you idea of maximum volatility of stock. So you can adjust your position in those band of +ve and -ve value. Both are extreme value.

This is way most of experts gives you band of movement of any stock. Then rather than depend on any other why you are not study yourself?

I will make continue on Option trading and it benefit for cash segment. Latter I will tell you how to calculate and predict stock movement. In this way you can help yourself. I will try to give more simpler form of article so everyone can understand easily.
Gives You Better Returns
I will go through major topic following way are;

  • What is option trading?
  • Value of time in trading
  • how to use option in cash trading
  • How one can use option for own benefit.

and more things

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