What is a put in stock?
Answers: Puts are a type of option just the opposite of a CALL.
PUTS give the holder right right to Sell
CALLS give the holder the right to Buy.
The holder of a PUT option has the right to Put (or sell) that stock back to a writer at a predetermined strike price prior to the expiration of the option. The holder is betting the stock will drop in price so that he may buy it later for less than the strike price that he will sell it for.
Ex. a buyer of ABC Co. "Feb 50 Put Option" can sell/ put 100 shares (1 contract) back to the seller of the contract for $50 per share (prior to expiration on 3rd Friday in Feb). If the stock drops to $34, he will be able to buy the stock now for $34 and sell it for $50 for a $1,600 ($16 x 100 shares) profit. If the price doesn't go below $50, then the option expires unexercised.
Of course along the way the value of the premium changes and the option may be bought/ sold also
Buyers/ holders of PUTS bet the stock goes down and pay a premium to hold the option. Writers / Sellers of PUTS bet the the price will not drop and only collect the premium paid by the buyer.
Its a type of Option actually, the other being Call Option.
An Option is a financial instrument, that gives the right, but not the obligation, to engage in a future transaction on some underlying security. Its a contract between an option writer and buyer. An underlying could be a scrip, stock or even an index.
When you buy a Put Option, you are bearish or pessimistic that prices of that underlying could go down in future upto expiry of that particular contract. On the other hand, in a Call Option you are bullish or optimistic.
How i can understand share market sensex?
Answers: OBSERVATION!
and studies...
Sensex is an index of 30 major stocks from different segments like Pharma, IT, Auto industry etc. So the movement of sensex reflects the general movement of the stock market.
How long should I check a forex EA? I'm getting anxious to use Avonko Elite EA beside valid money?
My Avonko Elite EA is up 88% in 6 weeks surrounded by a demo account I purchased for use beside MT4, and I'm starting to get anxious to cause real money beside it.Am I being surrounded by too much of a hurry? I know trading is full of ups and downs and I've heard my balanced share of horror stories. I'm just wondering how much time is so-so for testing something out contained by the FX markets. I be aware of it is probably less time than surrounded by the stock market (since currency is more helpful, more liquid, more transparent) but I really enjoy to admit I don't own the experience to be a sound style guru of this.
Any advice would be excellente - gratitude!
Answers: You should backtest your EA for the last years to know how successfully be it.
Depending on the performance your system achieve, you must trade it on a demo account for at lowest possible 2 or 3 months.
It's just my view, but if your EA is a good one, 3 months for very soon it will make you money anyway. So why should you be within a hurry?
Yes you are too much in a hurry.
There's a mistake various people bring in, professionals and amateurs alike: confusing LUCK with SKILL.
It is tremendously easy to capture lucky once, or twice, or ten times.
It is also very uncomplicated to be unlucky in "one trade" that erases adjectives of those 88% gains.
You call for to ask yourself these questions:
- is my expectation for RISK clearly defined
- does my trading plan know how to control risk and check losses
- does my trading plan have a passable expectation of producing more profit than loss
Continue trading with your practice rationalization for six months. This amount of time should be sufficient for you to experience losses. Once you start experiencing losses, you'll rethink it.
The annals of history are full of stories of professional and amateur traders who hold a good run of luck for one year, two years, or even several years. They give attention to their strategy worked, when in reality it was simply luck that happen to work for a while in a specific market. When that souk "changed", their trading method not only cease to work, but erased 90% of the gains they have made all those years.
You see this adjectives the time with floor traders. These guys will rack up hundreds of thousands of dollars contained by profit in a year, single to see it all disappear contained by three days.
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Happy Prosperity Year
Wow, I can't believe the pumping and dumping for Avonko. I'm up 4000% since Thanksgiving. This system is incredible! My advise is to not use this scam EA.