June 2023


How to improve your stock trading results with options

When trading stocks, options can be an excellent way to improve your results and mitigate risks. Options are derivative financial instrument or vehicle that gives the buyer the right to trade a particular asset at a predetermined and agreed-upon price on or before a specific date. Options give traders more flexibility by enabling them to hedge their portfolios against short-term losses and speculate on long-term gains.

There are two types of options: a call option which gives the buyer the right to buy an asset or stock at a set price. A put option gives the buyer the right to sell an asset at the same predetermined price.

When trading options, it’s essential to understand your exposure and potential rewards. Options are generally less expensive than other financial instruments, such as stocks or futures, so they offer an opportunity for greater leverage on a limited budget. However, this also means you could incur more significant losses if the underlying asset’s price moves against you.

Covered call

Options can be used in various ways to improve stock trading results. One way is through covered calls, which allow traders to write call options on assets they already own to capture additional income from time decay (the gradual erosion of an option’s value due to its expiration). This strategy can generate extra cash flow while limiting downside risk.

The married put

Another strategy is the married put, which allows traders to purchase a put option on an underlying asset they wish to own while simultaneously buying the stock at the same time. This strategy gives them downside protection in case of a sudden drop in the stock’s price and prevents them from missing out on any upside if it rises.

Spread trading

Spread trading is a popular way to increase potential gains or reduce losses when trading stocks through options. A spread trade involves buying and selling options with different strike prices and expiration dates but with the same underlying asset. By taking advantage of differences in implied volatility between call and put contracts, traders can take advantageof a single move in either direction without exposing themselves to unlimited risk.

Options offer a wide range of strategies and can be used to diversify a trading portfolio while still taking part in the stock market. Understanding your exposure and potential rewards can improve your stock trading results with options trading. Familiarise yourself with different strategies, understand how they work, and practice with paper money before committing to capital. With this knowledge and experience, you’ll be well-positioned to take advantage of opportunities in Singapore while managing risk when trading stocks.

Why Singaporean traders use options trading strategies

Singaporean traders use options trading strategies for several reasons. Firstly, they can take advantage of the cost-effective structure of option contracts. Options require a much lower initial investment than stocks and other derivatives, allowing investors to speculate on potential returns with less capital outlay.

Options provide more flexibility regarding risk management and hedging strategies. For instance, traders can buy calls or put into protection against losses from volatile market conditions or implement spread trading strategies to maximise potential profits while limiting downside risks. Options offer the ability to leverage one’s portfolio without committing more capital. By purchasing an option instead of buying the underlying asset outright, traders can participate in price movements without committing a large sum of money upfront.

Singaporean traders also use options trading strategies because of their low transaction costs and high liquidity on the Singapore Exchange Market (SGX). The SGX has a wide range of products, including single stock options, index options and futures contracts for various international markets that enable investors to quickly diversify their portfolios across global exchanges. SGX provides access to real-time market data and advanced analytics tools such as comprehensive charting capabilities and advanced order types. It makes it easier for Singaporean traders to make informed decisions quickly and capitalise on market opportunities efficiently.


Options can be an excellent way to improve stock trading results and minimise risk. They offer flexibility regarding capital outlay, risk management and hedging strategies, and leverage opportunities without committing a large sum of money upfront. Singaporean traders can benefit from the low-cost structure, high liquidity and advanced analytics tools offered on the SGX market. Before opting into any options strategy, it is essential to thoroughly research the underlying asset and understand one’s exposure and potential reward. With this trading knowledge, you can make informed decisions quickly and maximise your stock trading returns with options.

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Is ADSS good for institutional investors?

Most institutional investors, such as asset managers, hedge funds and pension funds, have unique trading requirements which demand a high level of service and reliability from their chosen brokerage partner. So, when it comes to finding a brokerage firm that caters specifically to the needs of institutional investors, ADSS emerges as a notable contender. In this ADSS broker review, we take a look at the services it provides to institutional investors and its benefits.

ADSS background

ADSS is a market-leading brokerage firm that is dedicated to improving opportunities and enhancing the trading experience for all clients, no matter if they are individual retail traders or institutional investors. Since 2010, the firm has won many awardsand is often recognised by industry peers for its commitment to excellence, exceptional customer service, and quality trading platforms. Their multi-asset trading capabilities, personalised views of the markets, access to deep liquidity, and support from experienced specialists offer traders the ultimate trading experience.

Services for institutional investors

Aside from individual investors, ADSS provides sophisticated over-the-counter (OTC) products to institutional clients that deliver a wide range of trading solutions. These include competitive spreads as well as deep liquidity. ADSS uses bank, non-bank, and multiple regional liquidity pools to deliver a unique trading experience to institutional clients around the world, such as retail brokers, banks, hedge funds, and asset managers.

ADSS uses a bespoke version of the industry favouriteMetaTrader 4 (MT4) platform, allowing them to match investors with one or more sources of liquidity. This can be tailored to suit investors’ needs. ADSS is also connected to multiple third-party tech providers including OneZero and PrimeXM for an easy and quick setup.

Multiple instruments

Investors can access deep levels of liquidity across various instruments including:

  • Spot forex – ADSS provides over 65 currency pairs. Major, minor, and exotic currency pairs are available.
  • Precious metals – these include platinum, gold, and silver.
  • Contracts for Differences (CFDs) — these include global indices, commodities, treasures, and over 1,000 single stocks.

Trading Desk

Investors can access ADSS’ Trading Desk for institutional-level customer support and transaction execution services. These include:

  • 24/5 multilingual customer support desk
  • Voice execution
  • Market analysis and research

Global liquidity network

ADSS has more than 30 sources of liquidity available through its platform. This lets investors optimise the value of their trade. Some of ADSS’ connectivity includes Prime XM, Gold-I, Fastmatch, Lucera, TraderTools, One-Zero, Currenex and more.

Hosting and colocation

ADSS partners with the world’s leading providers of low-latency infrastructure hubs to meet the high standards it sets out for itself as well as offering quality service for traders around the world. The brokerage firm works with LD4 in London and NY4 in New York. They also provide full-feature low latency FIX API for pricing and trading alongside a 24/5 customer support team to solve any issues that arise.

Prime Brokerage

Regardless of how complex anyone’s trading requirements are, ADSS aims to offer a wide variety of prime brokerage services. Using its state-of-the-art technology and the power of its global network of partners, the investment firm delivers tailored services to institutional investors.

Bespoke Liquidity Solutions

ADSS’ clients have access to a deep multilayer liquidity pool through their extensive selection of market-leading Tier 1, Tier 2 bank, and non-bank market makers.

White Labelling

For other brokers, they can repackage services under their own brand name. Brokers can utilise extensive back-office support, along with all the tools needed to monitor client trading. For investors looking to provide a market-leading multi-asset trading platform with a fully integrated back-office management system, ADSS’ white label offerings provide a cost-effective solution.

ADSS has experience with collaborating with numerous institutions – from banks to brokers – and has delivered plenty of bespoke white-label solutions to meet the exact requirements of each client. These include fully customisable branding, access across multiple devices, full access to client onboarding,administration and back-office applications, customisable listing with more than 2,200 products available, as well as a dedicated relationship manager and a professionally trained support team available 24/5.

Margin solutions

ADSS offers a highly advanced and intuitive trading platform so investors can manage risk and efficiently use their capital by means of leverage. ADSS also provides clients with a Net Open Position (NOP) line for trading on a case-by-case basis.

Benefits for investors and clients

For institutional investors, working with ADSS brings quite a few benefits. These include:

  • Having a simple-to-use platform for retail investors.
  • Powerful integration of account opening, customer funding, marketing, and notification. capabilities and research, all in a single trading application.
  • The customer’s onboarding journey can be automated or manually approved.
  • Supports multiple payment channels (such as credit cards, country-specific payment. channels, and online transfers).
  • A multi-asset trading platform supporting Contracts for Difference (CFDs) across commodities, indices, stocks, and currency pairs in the US, Europe, and Asian markets.

Bottom line

In conclusion, ADSS has positioned itself as a reputable and suitable brokerage firm for institutional investors. It understands the unique requirements of these investors and provides a comprehensive range of services to meet their demands. This, in turn, provides institutional investors with a solid foundation for their trading activities. All in all, ADSS is a highly recommended broker that should be considered.

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Vital Strategies For Successful Capital Raising In Investment Banking

Business leaders often face circumstances that require more upfront capital investment than the company can generate internally. In these cases, the company can raise capital from outside investors to meet its objectives.

Investment bankers play a critical role in the broader economy by matching those selling securities with investors, thereby adding liquidity to markets. This makes financial development more efficient and helps businesses grow.

1. Identifying the Right Investors

The capital raising investment banking process can be time-consuming and complex. It requires proper planning and preparation, identifying possible investors, pitching your business, and negotiating terms. It’s important to understand the various financing options and how they differ from each other so you can choose the best one for your company.

Investors want to see a plan for how your company will achieve its objectives and what return they’ll receive in exchange for their investment. This should include financial projections, as well as a detailed description of the current state and potential future of your business.

The top motives for companies to raise capital are mergers and acquisitions, debt financing, the purchase of fixed assets, and expansion into new markets. A successful capital raising strategy involves maintaining a collaborative relationship with investors and providing them with regular updates on the company’s progress. This can help to build trust and increase the chances of getting the desired funding.

2. Developing a Strategy

Investment banks are middlemen between companies that want to issue new securities (like stocks or bonds) and the investing public. Investment bankers buy the shares at a discounted price and sell them on the market at a higher markup, generating profit for their employers. This is called underwriting. Investment bankers often work as part of a syndicate, with several other investment firms, to underwrite an offering so that their risk is spread out.

A private company may see a strategic opportunity that requires significant upfront capital investment – more than the business can generate internally. It might seek out outside investors to fill the gap. Investors look at your business plan, your liquidity and your financial statements to decide how much capital they can invest or loan you. They want to know how you intend to use the capital and approximately when you will reach your business goals. They also want to be sure that you can repay them in a timely manner.

3. Developing a Relationship

Investors want to invest in a company that has a clear vision and strong leadership. Demonstrate your expertise and show that you are a thoughtful partner by responding promptly to questions and suggestions.

Investment banks help companies and government organizations raise funds by selling securities – shares or bonds – to investors such as high net worth individuals or pension funds. The proceeds from these sales enable a company to fund large projects, such as an expansion into a new market or research and development.

A major aspect of investment banking involves underwriting, where a bank estimates how much a security might be demanded by investors and then issues it for sale at that price. This can involve evaluating current market conditions, assessing investor appetite and experience, comparing offerings in similar markets and benchmarking. It also involves creating financial models to help inform the client’s decision making. Some investment banks trade on their own accounts to generate in-house profit, which presents a potential conflict of interest.

4. Developing a Plan

An investment banker is an expert in advising clients on the best way to raise capital. This process involves a complex mix of factors and requires careful consideration. Having a roadmap for your fundraising journey will help you avoid the many pitfalls along the way.

Suppose that your business has spotted an opportunity that will propel its growth into the future, but it requires a substantial upfront capital investment – more than you can generate internally. In this case, you may choose to raise additional funding through venture capital in return for equity in your company.

An investment banker acts as a middleman between companies that want to issue new securities and investors that wish to purchase them. During underwriting, investment bankers determine the riskiness and market demand for a stock or bond offering before it is published. They then compile a list of orders at specific prices, called a book of demand, and allocate securities to institutional investors.

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