The second distinguishing characteristic of options is the so-called multidimensionality or (applicable to futures-style options in Russia) three-dimensionality. When trading options, it is not enough to worry about the movement of the underlying asset and make decisions only based on the price chart of the underlying asset..
The first important difference between options is the non-linear nature of the instrument.. Most newbies, usually, come to the options market from the world of line instruments (stocks or futures). On these instruments, the size of the profit is equal to the size of the loss with the same increase or decrease in the price..
Prize (price) an option on the market consists of two components: 1. Intrinsic value of an option. This is the amount, which we will receive, if we are now expiring the option and close the position in the underlying asset at the current market price. Example. Futures on an ordinary share of Sberbank costs 14 000 rub. и Long Call 13 500 (Bonus = 830 rub.).
1. in money (ITM – in the money) For this option, its exercise allows you to either buy the asset cheaper, what is it on the market now, or sell it for more. Example: Futures on an ordinary share of Sberbank costs 14 000 rub. (100 Shares) – 120 Call (we have the right to buy shares at 120 rub.) And 160 Put (we have the right to sell shares at 160 rub.) 2. on money (ATM – at the money) The strike of this option is approximately equal to (closest) to the BA price. The so-called central strike (remember this concept, it will be used frequently). In this way, exercising this option does not give any advantage, because. the asset price on the market is approximately the same. 140 Call and 140 Put 3. out of money (OTM – out of the money) For this option, its execution is not profitable, because. does not allow you to buy an asset cheaper, what is it on the market now, nor sell it for more. In this case, it is easier to buy (sell) underlying asset in the market, than under the terms of the option. 160 Call and 120 Put Начинающие трейдеры очень часто неправильно думают, что если опцион ITM, then it is profitable, and if OTM is unprofitable. This is wrong. And here are two examples. Example 1. Let's admit, futures on an ordinary share of Sberbank costs 14 000 rub. …
LESSON 18. CLASSIFICATION OF OPTIONS DEPENDING ON STRIKE Read more
For the option buyer (has the right to): Close with a reverse trade in the order book (same term and strike) Expiry Option (when, if it is profitable to perform it) Example: Long Call 65 000 and Si (on futures on the US dollar rate – Russian ruble) (1 200 rub.); BA cost = 65 000 rub. Let's admit, across 2 weeks, BA increased up to 80 000 rub.
How to start algorithmic trading. Writing robots from scratch for trading. Training Python Trading Robot from Scratch. Algotrading : My first thought about trading came from 4 Faculty of Economics course, when I realized, what you need to have passive income. Started with bank deposits and mutual funds (mutual funds), then fate threw me into IT. I am very addicted to this, entered a technical university and set a goal to combine information technology and exchange trading, because it's interesting, promising and highly paid. I will talk about, where to start mastering algorithmic trading without experience in trading and programming. More precisely, it will be a series of articles broken down into stages with a detailed description of the learning process and recommendations.. The training program is suitable not only for beginners, but also for experienced programmers, because. it also involves the development of exchange trading. Also, it may be of interest to traders, who will acquire the necessary knowledge in programming. Each stage is structured like this, that it won't take a lot of time, possible combination with work or study.
Отлично сказано по поводу всяких обучений у “рыночных гуру”. Как известно гурами становятся когда сами на рынках заработать не могут, а кое-какие поверхностные знания от опыта неудачной торговли отложились. Так вот, многие думают что их уроки безобидны и если ученикам пользы не будет то и вреда не принесут. На самом деле это не так. Обучение может принести необратимый вред начинающему трейдеру, что он так и не сможет зарабатывать никогда. Вот товарищ со смартлаба очень точно подметил суть:
И еще раз продублируем большими буквами:
Чему может научить вечный сливала? Он прописал тебе на подкорку алгоритм настоящего рыночного неудачника и тебе уже с этим жить до конца твоих дней.
Live streaming of transactions on the us stock exchange. All transactions take place on live accounts within the day on the NYSE markets, NASDAQ. https://www.youtube.com/user/dementor667/live – broadcast live Schedule: Weekdays 20:45 MSK time Recording | Telegram chat | Teaching
REVIEW OF MARK DOUGLAS'S BOOK "ZONE TRADING" This book describes a comprehensive look at the difficulties, that a person encounters, who has accepted the challenge from financial markets. When there is an understanding of that, that it's not limited to broker tips, and the rationale for buying or selling is, virtually, extremely complex, giving unpredictable results. The book offers a serious psychological approach., which should contribute to the achievement of stable positive results of the trader's trading decisions. The author does not offer a ready-made trading system, but his interest lies in a completely different plane. – show, how to think in order, to become a consistently successful trader. The book is intended for a wide audience, independently entering any financial markets (stock, futures, currency and commodity).
About the book The authors tried to give a detailed description of the structure of the US stock market, draw conclusions and give advice, allowing you to apply the knowledge gained in any stock market - not only in the UNITED States, but also in Russia. After reading this book, you will get acquainted with the history of the US stock market and its structure, learn about the main participants, their goals and functions, master the "combat arsenal" of the investor's financial instruments.