December 8, 2011
Stock market trading beginner 2 very stupid questions?Please help?
kalns asked:
I start online trading on online virtual simulation platform to practice options trading. But there is a “20-min” delay which keeps annoying me.
My questions:
1. So that means i am not trading at the price when i click the “confirm” button? E.g. I want to buy apple.inc at $100 at 10am so i click “confirm”, but the trade is delayed to 10.20am when apple inc has soared to $200, so i am trading at $200 which is way more expensive to me??????????
2. What does the word “position” means? I buy a share so i have 1 position???I sell that share so i lost that position????
I start online trading on online virtual simulation platform to practice options trading. But there is a “20-min” delay which keeps annoying me.
My questions:
1. So that means i am not trading at the price when i click the “confirm” button? E.g. I want to buy apple.inc at $100 at 10am so i click “confirm”, but the trade is delayed to 10.20am when apple inc has soared to $200, so i am trading at $200 which is way more expensive to me??????????
2. What does the word “position” means? I buy a share so i have 1 position???I sell that share so i lost that position????
Thank you so much and forgive me asking such stupid questions.
Filed under Investing by Administrator
October 31, 2008
Why would you want to buy a put or a call?
TiZoXiN asked:
Why would you want to buy a put or a call? Suppose you thought Apple’s new I-Phone would be a huge boom for Apple, would you buy a put or a call on the stock? In order to answer this question, take a look at what Apple (trading symbol AAPL) is selling at right now and what it’s puts and calls are selling for. With derivatives likes puts and calls, can an investor stand to make a lot of money with a minimal cash investment? Why? What about if he/she guesses wrong, do they loss a lot of money?
Why would you want to buy a put or a call? Suppose you thought Apple’s new I-Phone would be a huge boom for Apple, would you buy a put or a call on the stock? In order to answer this question, take a look at what Apple (trading symbol AAPL) is selling at right now and what it’s puts and calls are selling for. With derivatives likes puts and calls, can an investor stand to make a lot of money with a minimal cash investment? Why? What about if he/she guesses wrong, do they loss a lot of money?
Filed under Investing by Administrator

