What are Covered Calls in Options Trading? A covered call is a two-part options trading strategy in which stock is purchased or owned and calls are sold against the underlying security. Covered calls refer to a financial transaction in which the investor selling call options owns an equivalent amount of […]
Trading Basics
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What Is a Futures Market? A Futures Market is an exchange where futures contracts are traded for stocks, securities, or commodities with a set price for a future date. A futures market is an auction market. Traders purchase and sell commodity and futures contracts for delivery at a later date. […]
After Hours Trading – Who is Allowed to Trade After Hours? After-hours trading, or extended hours trading refers to the time outside regular trading hours when an investor can buy and sell securities. The main trading session for most stock markets occurs throughout the day. A trading session is the […]
What Is a Dealer Market? A dealer market is a financial market where dealers list prices they are willing to purchase and sell specific assets for their own account. Dealers add liquidity and act as market makers. The dealer market is sometimes known as an OTC market (over-the-counter). This means […]
What Is Autotrading? Autotrading stocks and financial instruments is a method of entering and exiting trades using a program or platform that executes trading algorithms with pre-set rules. Autotrading is a pre-set trading plan where buy and sell orders are automatically placed based on an underlying algorithm or program. These […]
What Does it Mean to Accept Risk? To accept risk is a risk management strategy where the identified risk is considered acceptable enough that no expense or effort is made trying to limit or avoid it. Risk acceptance occurs when a business or individual decides that the potential loss from […]