Posts Tagged ‘Contracts’


Example of a Bull Call Spread

Written on 15th February 2008 (see below for further updates)I thought I’d provide an example of a Bull Call Spread (BCS) using the Commonwealth Bank as an example. There is a lot of volatility in the market at the moment. If you have studied my course then you will know that high volatility is a [...]

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Forex Trading – a Guide to Pips and Spread in Online Forex Trading

The first thing you must understand in forex trading is the spread and the pips. Each currency is traded against another one. This is called a currency pair. An example for a popular pair with high daily trading volume is EUR/USD.The EUR/USD exchange rate is one of the most traded contracts in the world. In [...]

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Financial Spread Betting – Today’s Scenario

You should be able to find several indispensable facts about financial spread betting in the following paragraphs. If there’s at least one fact you didn’t know before, imagine the difference it might make.There was a time when financial spread betting was just a way to “punt” on the financial markets, purely a gambling product with [...]

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Credit Option Spreads

What is a credit spread?Investopedia says… “An options strategy where a high premium option is sold and a low premium option is bought on the same underlying security.”OK I know that is very vague, so lets see if I can do better.It is a trading strategy in which you buy an out of the money [...]

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