World Of Finance

There is a whole world of financial securities other than stocks and bonds. One of such securities is Derivatives, which are financial instruments whose “value” are derived from the value of the underlying. Hence, they are called “derivative” i.e. derive from something else. The underlying on which derivative is based could be: Asset: e.g. stocks, bonds, mortgages, real estate, commodities, real estate properties. Index: e.g. stock market indices, Consumer Price Index, Foreign Currencies and interest rates Other items: e.g. Weather (yes- you will derivatives written on rain!!) For example – a derivative on a stock derive its value from the value of underlying stock! There are three main types of derivatives: Forwards (similar to Futures), Options and Swaps. Futures are very similar to Forwards except for the fact that Futures are traded on exchange while Forwards are traded over the counter (OTC). In this article I am going to concentrate only on Futures (F) and Options (O). So

Anyone can become a day trader but not everyone can make money out of it. Day trading is suitable for only those who wish to speculate on the stock market. Generally day traders say that day trading not only gives you the opportunity to make money, but also to lose. No matter whether you are a full time employee or part time employee, you can trade in stocks and enjoy the benefit. Stock market provides you an opportunity to use your knowledge of every-day events and convert them into profits. 12 Techniques for Day Trading  Following techniques will help you to become a successful intra day trader. Following the techniques are more important than understanding it. Fix a target price Wait for the buy/sell price to initiate the call Always fix Stop Loss Take expert Advice Analyze the tips carefully Wait, Watch and Trade Don't Over trade Always follow Market trend Wait for an opportunity Don’t expect too much Confirm the buying & selling volumes Don’t get