Options Trading For Dummies

With the introduction of trading options over the Internet, it has become possible for new and small investors to start options trading. Earlier, the market was not easily accessible to small investors. Banks, multinational companies and large conglomerates were the only ones who were engaged in trading. With the help of technology, now everyone can derive benefits from this low risk, high return market. However, a proper understanding of the system is necessary to avoid losses. This is where the options trading brokers are helpful. Brokers help individuals as well as institutional investors to establish their accounts for options trading.

Options trading is a relatively new option that has emerged for small investors. Brokers allow investors to open their trading accounts by putting down a comparatively smaller down-payment. They offer the investors a quick and inexpensive way to trade from the comfort of their homes or offices, day and night. Many of these brokers online websites offer demo or trial accounts that help the traders practice their trading skills. These accounts also help increase the knowledge of the functioning of the actual options trading market.

The best trading options that could yield the most profit can be selected with the help of a reputed forex trading broker. The major factors to consider while choosing a trading options product are feedback from other traders about the product, broker's advice, and its past-recorded trend in the options market.

In options trading, the strategies make a lot of difference. To decide on any particular strategy, traders must understand the trends of the market. A key strategy to limit losses is to identify and exit the loser as soon as possible. The volatility of the market is another point to consider. Traders' success in the trading market depends on their understanding of the market trends and the information they possess. Brokers keep traders informed of market fluctuations, which help them to take maximum advantage of the forex market.

DIfficulties in trading options arise when your prediction of a short term trade is in fact the opposite of what was expected. Many times an investor will chose to get "in" on an option before earnings are reported in hopes of making a short term exponential "jump". The chances of your predicting correctly is actually greater than 50:50 however one thing to weigh is the fact that ALL of the money can be lost if you are wrong.

For more information and an excellent in depth explanation of the different types of options trading and how to get started in this kind of investment, please visit www.888options.com

Thanks to Kristy Annely.

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Apple In The Courts

According to Macrumors.com

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In April, we reported that a company called Psystar was offering the first Mac clone. Using off the shelf PC parts and a modified version of Mac OS X Leopard, Psystar promised a cheaper alternative to an Apple Mac.

Despite some initial concerns about their legitimacy, Psystar has delivered what they have advertised and later even offered software updates and server models.

Throughout, Apple has remained quiet about the company and many have expected that they would pursue legal action. AppleInsider reports that on July 3rd, Apple filed a formal complaint against the clone manufacturer. Apple's lawsuit is said to on the ground of copyright infringement.
The Mac maker filed a formal complaint in the U.S. District Court for the Northern District of California on July 3rd, just one day after Psystar began distributing a modified version of the Mac OS X 10.5.4 Leopard update to customers who had previously purchased one of its unauthorized Mac systems.

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This news comes at a very volatile time in the market. While this could mean a small cash out for Apple in the end, it is such a small case barely worth their time and so is a hinderance to their ongoing research and productivity.

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The Gas Geyser: Price Of Oil Skyrockets

Unfortunately, while gas prices have gone through the roof, people's paychecks have not. Which has probably left you wondering how high gas prices will go and whether or not you'll be able to keep your head above water.

Gas prices are affected by several factors. At the local gas station, gas prices are set by the cost of replacement. Basically, gas is priced according to how much it will cost to replace it rather than how much it originally cost to buy it. This means you have to pay for the fear of rising prices.

The rising price of crude oil is another factor that has caused gas prices to increase. This is attributed to the actions of some investors who have started bidding the price of a barrel of oil ever higher, resulting in record high gas prices.

These two factors work together as speculators begin buying more in anticipation of higher profits, which in turn causes prices to rise, resulting in a vicious cycle of ever rising prices for consumers.

All of this is compounded by the ever-weakening US dollar. When our currency gets weak against that of other countries, the foreign oil companies begin to charge more for gas. This, again, is another example of a vicious circle pushing prices up, since rising gas prices negatively affect the economy, which drives the dollar down and, well, you get the idea.

So how high are gas prices going to go? Investment firm Goldman Sachs, one of the world leaders in finance, anticipates that crude oil will rise 25 dollars per barrel. In general, a dollar increase in a barrel or oil results in a rise in gas prices at about 2 cents per gallon. So $6.00 per gallon may be coming!

If Goldman Sachs is correct, you're looking at another 50 to 60 cent increase in the price of a gallon of gas. For most of us that means gas prices of $6.00 or more. On a more positive note, gas prices are expected to drop again in the fall, but don't bet on a return to $2 per gallon any time soon. Keep tightening those belts and do everything you can to get better fuel economy.

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