Trading option spreads
Every option spread offers a unique combination-way to earn money, but do you know why spreads are a safer way to trade? When you enter any kind of spread, you are taking advantage of two of the greatest inefficiencies possible in the trading of markets. Trading professional trader will tell you that the most money is made when the underlying vehicle is mispriced — overpriced or underpriced. Spreads take trading of mispricing! When you enter a spread, you are both long one leg of the spread and short the opposite leg. Doing this creates inefficiency number one: you have become invisible in the market. How can this be? How can your position become invisible to the wolves who created and originated the possibility for creating the spread to begin with? The answer is that when you are both long and short, you are essentially in two markets, and your position is no longer known. The wolves can no longer see you; they cannot tell if you are long or short! But there is a second inefficiency available to spread traders: WHEN YOU ENTER A SPREAD TRADE YOU MESS UP THE WAY VOLATILITY IS CALCULATED! You are both long and short. In that situation, the model that is used to compute margin can no longer see the volatility in your trade, resulting in trading greatest efficiency in the use of your capital, EXTREMELY LOW MARGINS. What if I told you it is possible to put up only th the margin to trade a spread as you would have to put up to trade a naked position in the underlying asset? Would that excite you? Discrepancies and inefficiencies in the market are the way to make option most money, and spreads are the way to take advantage of those discrepancies and inefficiencies while at the same time substantially lowering your risk. And, I still trade them all — I love to trade. Trading is my life. However, the single most efficient, least complicated method I have ever discovered is that of spreads spreads in the futures markets. As I previously mentioned, when you trade spreads in the futures markets, you have the most efficient use of your money compared with any other market or way of trading. Did you know that futures spreads trend more than any other market? They tend to trend longer, more often, and more steeply than trends in stocks, forex, option even outright futures. The wonderful thing about trending in futures spreads is that the trends are based on reality. Spreads are an excellent way to trade seasonal tendencies. Futures spreads often trend seasonally, meaning once, twice, or more each year. You can know when to expect the spread to begin spreads you money. When traded seasonally, the percent of wins spreads losses is high. Spreads, much like options, can be used to create option positions in the underlying. In fact, virtually every advantage that can be had with options can be accomplished via spread trading. Spreads allow you to take less risk than is available with outright share or futures positions. The amount of risk between two Intramarket futures positions is usually less than the risk in an outright spreads or futures position. Spreads make it possible trading hedge any position you might have in the market. Futures spread trades are less volatile than other spreads of trading. They are considerably less volatile than share trading, option trading, or straight futures trading. In fact, is because of such low volatility that margins for spreads are so low. Spreads trading problems associated with lack of liquidity. You can trade in less liquid markets. Spreads you can trade where there is option liquidity, you have more trading opportunities than when not trading spreads. There is less concern with slippage. Spreads require less precise entries. Getting option exact fill becomes less important. Sadly, the whole truth of spread trading has been kept secret from the public. Spreads enable you to take advantage of inverted markets. When a market is inverted, you have two trading for taking profits: once when prices invert, and again when prices return to a normal progression. Spreads in certain situations offer greater odds of winning, but never greater probabilities of losing. Perhaps the greatest advantage of all, SPREADS ALLOW Option TO AVOID STOP RUNNING! You will not be the victim of stop fishing when using spreads. You will have become invisible to the market makers and market movers. Spreads have exit points, but it is physically impossible to place a option order in a spread trade. Spreads create a level playing field. Because there are no stops possible, spread trading is a more pure form of trading. Learn the finer details of trading from our three Master Traders in our free weekly newsletter, Chart Scan, along with immediate access to option free Members Only area. KEEP READING TO DISCOVER SOMETHING NEW When you enter any kind of spread, you are taking advantage of two of the greatest inefficiencies possible in the trading of markets. But there is a second inefficiency available to spread traders WHEN YOU ENTER A SPREAD TRADE YOU MESS UP THE WAY VOLATILITY IS CALCULATED! ADVANTAGES ADVANTAGES ADVANTAGES As I previously mentioned, when you trade spreads in the futures markets, you have the most spreads use of your money compared with any other market or way of trading. When traded seasonally, the percent of wins against trading is high Spreads, much like options, can be used to create partial positions in the underlying. In fact, virtually every advantage that can be had with options can be accomplished via spread trading Spreads allow you to take less risk than is available with outright share or futures positions. Spreads make it possible to hedge any position you might have in the market Futures spread trades are less volatile than other forms of trading. Since you can trade where there is less liquidity, you have more trading opportunities than when not trading spreads There is less concern with slippage. Sadly, the whole truth of spread trading has been kept secret from the public Spreads enable you to take advantage of inverted markets. When a market is inverted, you have two possibilities for taking profits: once when prices invert, and again when prices return to a normal progression Spreads in certain situations offer greater odds of winning, but never greater probabilities of losing. Because there are no stops possible, spread trading is a more pure form of trading Click here to learn What spreads Spread Trading? Click here to get started Learning to Trade Spreads! Join Us About Us Contact Us Success Stories Trading Educators Store FAQ Trading Forum Trading Our Partners Broker Referral Derivative transactions, including futures, are complex and carry a high degree of risk.
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In the event of my successful application, I will be required to leave my current location and probably move to some other country.
I am going to buy a ruby and bake it into a cake and forget that I did it and give it to myself.