• 2

    Oct

    What is LEAPS?

    LEAPS or Long Term Equity Anticipation Security is one of option that has maturity up to several years. The term of LEAPS could reach up to 39 months. The LEAPS expire is usually at January ever year. LEAPS are useful for protecting large firm or large index. This option is suitable for long-term investor who wants protect their investment. LEAPS are answer for portfolio investors who want protect investment longer. LEAPS are traded at Chicago Board Option Exchange (CBOE). In mid 1980, the traders are actively trade at LEAPS than short-term option. However LEAPS trading for a just moment. Buying LEAPS at an Exchange is expensive. Sometimes you cannot find specified LEAPS that fit with your investment. You want to buy option for Stock ABC but the Exchange might not provide. E.g., you want
  • 12

    Nov

    How futures are traded?

    The futures are derivative that uses to protect investor from investment risk. It could protect financial asset and commodity. Investor can buys futures to protect their stock, bond, index, etc. On the other hand, farmer and trader could buy futures to protect their commodity. Unlike option, this derivative is obligation. The investor must exercise their futures. The investor can buys futures at an exchange through broker. You should make account to deposit. Broker need you guarantee like deposit, account bank, or precious notes. The Broker will ask you initial margin base on your contract size. You should choice whether you buyer (long position) or seller (short position). The Futures are very different, investor can settles anytime they want. As consequently, futures investor m
  • 9

    Nov

    Option Trading

    We know option useful for protect our asset from risk like market risk, interest risk, default risk, foreign currency risk, etc. Option can be applied to stock, bond, index, etc. Besides call option and put option, there are kind of option i.e. American style and European style. Mostly investor use American style. American style option has straightness i.e. the option can be exercised on and before expire date. E.g., you have option contract that mature at Next December. Perhaps, you can exercise your option at October or November. On the other hand, you can exercise European style option only at expiration date. American style is more valuable because this option can be exercise flexible. American style is useful at certain circumstance. E.g., you buy put option to a company. Before you
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