What are the dangers of writing a covered put?
Answers: A covered put is usually considered to be a short underlying position and a short put position.
That combination is also known as a synthetic short call. It has the same risks as a naked short call position. It will produce large losses if the underlying moves up in price significantly.
I don't imagine that it would be any different than solely shorting the stock. You have some cushion from the premium on the put but at the same time you are still subject to losses if the short position moves against you.
Plus puts have pretty low volumes so it'll take a little longer unwinding the position than unwinding a call position.
Stock broker information?
How much can they possibly make ( the largest amount of money, an estimation). Also, could you narrate me the everyday role of a stock broker, and what they exactly do? thanks! Im 14 years feeble and am studying this career. I appreciate everyone's answers and will pick the one that best suites my question description. thankyouAnswers: A stock broker is a salesperson. They take advice to buy and sell stock, bonds or mutual funds and attain a commission. The everyday life of a stock broker involves calling their clients and giving them a run down of what they should be buying or selling - usually this information comes from the brokerage's traders or research department. They also spend their sunshine finding new clients to nickname so that they can have more accounts beneath management. The more money they government the more money they are likely to trademark.
Beginning stock brokers average between 25K-35K since they have a small detail of clients and can't sell that much.
More developed stock brokers have a larger index of clients which should include some very well-to-do clients and they make inwardly the high six-figures.
I while it is not unheard of to see brokers making over $2 million a year, a few guys at my shop be doing so, most people average contained by the low six figures.
The first few years of their career, brokers really don't make that much money especcially if you average out the amount of time they spend have to build their book.
I'll do my best to answer your Qs in indistinguishable order you asked them:
1] How much can they possibly trade name ( the largest amount of money, an estimation).
A: I heard as much as $15,000,000 [15 million dollars U.S.] per year.
B] would you narrate me the everyday role of a stock broker, and what they exactly do?
A: Their jobs are to bring BUlls [BUyers] and BEars [SEllers] together to angle capital for the corporations they represent as a middle personage, agent or go-between.
Its great you are human being taught to leaqrn almost our economy and how one aspect works.
Its crucial for you to educate yourself.
The expression, "The more you revise, the more you earn." is true when you apply what you learn within order to earn.
You can usually find excellent, easy-to-understand definition of many financial and investment vocabulary by going to this free site, recognized by Y! A as a "Featured Knowledge Partner":
http://investopedia.com
Investopedia also have a free, paper trading platform. You can set up a virtual depiction and almost trade as though you were trading beside your own hard-earned money.
http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
Thanks for asking your Q! I enjoy answering it!
Very Truly Yours,
Ron Berue
Yes, that is my definite last moniker!
it is a sales undertaking.usually two types.Instititional and retail...
designates your customers.....
they usually specialize in institutional...debt or equity...or second-hand goods.
with the right open market...and right customers......you can make a million or greatly more......
What is the trading process of legitimate diamonds?
Answers: About 3 to 5 years ago on PBS, there was a special program about the diamond business.
I don't know if you can access the archives or not but its worth a try, isn't it?
http://pbs.org
If not, I THINK you might be able to e-mail or snail mail PBS and ask about purchasing a DVD.
Thanks for asking your Q! I enjoyed answering it(a)
VTY,
Ron Berue
Yes, that is my real last name!