options

CTA Trend Following model shows Cocoa futures were stopped out and JPY/USD flipping between long and neutral in different models.
There have been rumors of recent financial distress at some proprietary trading firms that trade Eurodollar Short Term Interest Rates on the CME Group exchange. The latest block trades posted today confirm that one of these firms might have capitulated or sold the position to deeper-pocket hedge funds or trading firms.
There are many kinds of options in the trading world. Vanilla options are the most common types of option contracts known to investors on the market. There are two kinds of vanilla options: European and American style options. European options are the most simple and basic form of option contracts used by equity market players.
The beauty of options is that you can design trades based on a more specific outlook on the market that can define levels of risk and reward.
One way to prevent losses in a deteriorating position is the use of stop-loss orders. A stop-loss order is activated when a stock, ETF or futures contract reaches a certain price point. Let’s use the example of Facebook. On the afternoon of Jan. 4, 2018, a purchase of FB is made at $185. After rising above $188 a stop is placed to sell FB at $184 (just below the previous high close) on Jan. 11. This means that at $184 the stop becomes a market sell order and the long position is liquidated.
With volatility over the last two years at record lows traders have been itching to trade something that really moves. Bitcoin definitely fits that description. On the first day of 2017 bitcoin traded above $1,000 for the first time since January of 2014. The highest price for bitcoin at the time was 1,216.70 in 2013. By June 5, 2017, the price more than doubled to 2,874.00. On Nov. 12 it was trading at $5,426.
Options-based trading strategies have always been a niche, but like all trading strategies, options-based strategies are getting more complex.
Options-based trading strategies have always been a niche, but like all trading strategies, options-based strategies are getting more complex.
Binary options are offered in several regulated markets to allow retail traders an easy way to access market moves.
Options allow traders to take a more defined position on an underlying stock; Weekly options take this benefit one step further.