Options trading

dow-trading.com

Login

Options Trading

Options trading

Have you ever wondered why insurance companies never have to pay rent?
Visit a major city of your choice and have a ride to the highest building in town. Guess what, most of the time it's going to be a bank or an insurance!

Unfortunately, it is impossible for individuals to participate in this business. Unless....you take the global exchanges as your market of choice.
Now, how do you act as an insurer in the global markets? The answer is simple: Derivatives Options.

By selling such an option, you act as an insurance for your counter-party.
They buy a certain right from you that they can use in the future.
On the other hand, they pay you a fee (called the premium).
This premium is yours, no matter what happens.
Of course, the insurance company (or you, in this case) enters a certain risk by accepting the trade, if the markets end up moving in the opposite direction of your option. That is what you get the premium for!

Most of the time however, just like in "real life", the insurance is not needed, its rights are never claimed.
( This is why the "Big Players" sell options and do not buy them )
In this case you will have paid your insurance for nothing, and (in our trading scenario) the sold options expire worthless, leaving all of the collected premium to you. Congratulations!

But what happens if the markets move against your sold options? Remember our comparison to the insurance business...
An insurance company delegates most of its risk to a reinsurer. We are doing the same here by using a self-developed, highly sophisticated software that actually "hedges" your options position against potentially dangerous market behaviour to control most of the risks involved. Hedging is a centuries-old method of risk-management that we are now combining and enhancing with the most powerful state-of-the-art technology of the 21st century.

If you want to know more about this next-generation trading strategy, click the "For advanced traders" link below for a more detailed, technical description, or contact us directly by mailing to This e-mail address is being protected from spam bots, you need JavaScript enabled to view it .

[ Back ]