Trading Strategies

25 Proven Strategies for Trading Options

25 Proven Strategies for Trading Options Currently trading options on futures, or are interested in exploring them further? Check out the CME Group 25 Proven Strategies guide on trading options. This useful illustrated guide explains 25 key options trading strategies including: 1. Long Futures 2. Sh

Five Tips for Trading ETFs By Ron Rowland

Every week I tell you about exchange traded funds (ETFs) that you can use for various investment purposes. You could be wondering, though, what’s the best way to buy them. So in today’s column I’ll give you some practical information that will help you implement whatever ETF invest

Bear Spread

(1) A strategy involving the simultaneous purchase and sale of options of the same class and expiration date, but different strike prices. In a bear spread, the option that is purchased has a lower delta than the option that is bought. For example, in a call bear spread, the purchased option has a h

Spread (or Straddle)

The purchase of one futures delivery month against the sale of another futures delivery month of the same commodity; the purchase of one delivery month of one commodity against the sale of that same delivery month of a different commodity; or the purchase of one commodity in one market ag

Exotic Carry Trade Strategies

The Carry Trade strategy in forex trading involves buying a high yielding currency and selling a lower yielding currency. In doing this you will capture the interest rate differential. For example if the New Zealand Dollar has an interest rate of xx and the Japanese Yen has an interest rate of xx. I

Exotic Carry Trade

By Dan Blystone Introduction to the Carry Trade The carry trade, a strategy favored among hedge funds and investment banks, is now growing in popularity among retail forex traders. A number of forex brokers are currently offer trading in exotic currencies such as the Turkish Lira (TRY) and South Af

Turtle Traders

Famous commodities trader Richard Dennis was having an ongoing debate with his friend and business partner Bill Eckhardt about whether great traders are born or made – whether it is possible to teach the ability to trade successfully. While Dennis firmly bel

The Three Dimensional Market: Who, What, Why?

PART I: TRACKING MARKET PARTICIPANTS By Martha Stokes, C.M.T. © copyright 2007 all rights reserved. Most traders have a one dimensional view of the market.  They are simply searching for stocks to buy or sell using the latest strategy or indicator that they have learned.  Excitement is high abo

Liquidation Arbitrage

Liquidation arbitrage is a strategy to profit from a company’s aquisition or breakup based on research showing that the value of a company’s liquidation assets is greater than it’s stock value. The strategy can be highly profitable due to the fact that many businesses own assets th

Ladder Strategy

A strategy in which a bond portfolio is constructed that invests equal amounts of money in every maturity within a given range in order to offset interest rate risk.