I am interested in options. I have started a demo account with IG to trade options . I note these are not an option house and seem to have little information on the options other than what they are.
The P/L figures make no sense to me. Please somebody explain below:
TRADE
26.5.16 - SP 500...
Indeed... I suppose the question is more of a theoretical one being, does the market require more selling to further lower the price?
i.e what would happen if a lot of people were short but no more longs or shorts entered positions. Would the price continue to fall lower and lower or would...
but is this always the case? Selling causes the market to fall. If there is a lot of short interest and bad news is released, there is nobody left to sell because short interest is already so high and everybody has already taken their position.
I have noticed that when there is a lot of short interest in a tradable asset, the price sort of becomes like an elastic band and the lower it goes and the more short interest there is then the more likely there is likely to be an aggressive reversal as it pings back up the other way and traders...
Apologies, should have been clearer i meant neutral strategy in a volatile market.
In any event i hear what you are saying. There is no holy grail fit all strategy.
Hi all
A number of related questions:
1. Anybody recommend an options/futures broker offering demo account ?
2. How can you calculate the risk to reward of an option and know the profit potential before entering?
3. would it be possible to develop a strategy consisting of buying cheap option...