The coming US dollar crisis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The coming US dollar crisis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: HH who wrote (11722)	9/24/2008 3:15:02 PM
From: Slumdog	Read Replies (1) of 71456

I know the question was not directed at me, but permit me. A derivative, simply put, is a leveraged position, "derived" from an underlying security. The plainest example is a call or put option, which gives you leverage to the corresponding underlying stock or index. Some people refer to them as "side bets" You can take the bet (write an option)and collect premium or place the bet(buy an option). They can be used to hedge or speculate. Since a common statistic states that 80% off all options expire worthless, it is better to be a "market taker" than a "market maker" or better a seller than a buyer.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next