Tag Archives: investments explained

What are ETFs? Exchange Traded Funds Explained

ETFs or Exchange Traded Funds have been around since the 1980’s but with all the stock market volatility of the past 6 years or so ETFs have gathered more and more attention from serious investors. But what is an ETF and how can they benefit you as an individual investor?

The Basics of Option Trading

Many investors remain fixated on the vehicles they know the best. For this very reason their portfolio growth can stagnate after a particular amount of time. As you probably already know, the market tends to ebb and flow which can result in violent swings in either direction. It is important to learn how this market volatility can actually benefit you. Knowing the basics of options trading is imperative if you are ever going to be a well-rounded investor.

First, what is option trading? It is a derivative investment, and can be used in futures trading, commodities, and stocks. Think of options as vehicles which allow investors a great deal of flexibility. In fact, the field is so broad that many traders focus solely on options.

Options can be categorized into two main categories. The first is the Call option. A call option contract can be bought, or it can be sold (written). The buyer of the option has the right, but not the obligation, to buy shares of an underlying security at a given price (also known as the “strike price”). The seller of the option has the obligation to sell the shares to the buyer at the strike price, if the buyer chooses to exercise the contract.

What Is Copy Trading?

Copy trading has grown in popularity in recent years, but what exactly is copy trading and how can you get started as a copy trader? Let’s answer this question.