Date Last Updated: July 21, 2019

Tag: trader

  • Swaps

    Option

    Option swaps are more commonly known by the acronym “swaption”. The concept is relatively simple, in that by participating in a swaption, a trader has acquired the option to enter an interest rate swap. They key factor is that the trader is not obligated to enter into the swap, but he does have the right to do so should he so desire.

  • Swaps

    Interest Rate

    Interest rate swaps are a type of Derivative transaction in which two participating parties swap, or exchange, positions in interest-bearing financial instruments for mutual advantage. The reasons for doing so are typically that one trader is seeking to reduce their exposure to interest rate fluctuations on the equity they currently own, assuming that equity (a bond or other interest-bearing ...

  • Options

    Strategies

    Once an investor decides to enter the options trading scene, they will need to exploit the various types of options trades to engender highest possible profits with the least downside risk. There are four kinds of options trades: Long Call, Long Put, Short Call and Short Put. By bringing the two standard stock trading strategies (Long and Short) into the mix, a number of options strategies ...

  • Investing

    Short Selling

    Short Selling, also known as Selling Short, refers to the common stock trading practice of selling an equity one doesn’t actually own, while intending to buy it back at some future date and - critically - at a lower price. The “short” refers to the trader owing the funds for payment of the equity to their broker, who must be repaid later when the investor succeeds in covering their position. ...