If you are thinking about how to trade exchange traded funds or ETF options here are a few tips to get you started.ETF option trading. The first thing you need to do is make sure you have a broker like Ameritrade or Etrade and that they have approved you for trading options such as ETF's. ETFs are securities that you trade like a stock and are typically designed to follow an underlying index like the Russel 1000, symbol FAS, which can trade over 80 million shares a day. Most of the top brokerages will have ETF trading available for traders. They will also have a ETF screener that can help you get started trading options. Companies like Ameritrade have a option screener called options 360 and a strategy trading platform. Exchange traded funds software On these options trading platforms you can enter the underlying symbol and it will tell you the current call and put options available.If you don't know the underlying symbol for the option you can type in the stock symbol and it will show you the option symbol. Most of these option platforms will also tell you the volume ,strike prices and what month they expire plus many other charts and so on.Call and put option contracts are 1 contract equals 100 shares of the stock.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Sunday, January 12, 2014
Exchange traded funds option trading.
If you are thinking about how to trade exchange traded funds or ETF options here are a few tips to get you started.ETF option trading. The first thing you need to do is make sure you have a broker like Ameritrade or Etrade and that they have approved you for trading options such as ETF's. ETFs are securities that you trade like a stock and are typically designed to follow an underlying index like the Russel 1000, symbol FAS, which can trade over 80 million shares a day. Most of the top brokerages will have ETF trading available for traders. They will also have a ETF screener that can help you get started trading options. Companies like Ameritrade have a option screener called options 360 and a strategy trading platform. Exchange traded funds software On these options trading platforms you can enter the underlying symbol and it will tell you the current call and put options available.If you don't know the underlying symbol for the option you can type in the stock symbol and it will show you the option symbol. Most of these option platforms will also tell you the volume ,strike prices and what month they expire plus many other charts and so on.Call and put option contracts are 1 contract equals 100 shares of the stock.
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