Mutual funds are known to provide the most optimum way for retail investors to partake and profit from the uptrends in equity markets. There are different types of mutual funds available to cater to varying needs of investors. Those schemes that have a higher allocation to equities are believed to be suited for long-term goals, while those with higher allocation to debt are meant to serve short-to-medium term goals. Equities have a higher potential to generate significant returns that any other asset classes when invested for a long time. Hence, investors with an investment horizon of 10 years or more might consider investing in equity mutual funds.

While investing in mutual funds, an investor must consider the volatility associated with the equities as an asset class. The net asset value (NAV) of equity funds may witness a dip in the short run. But instead of redeeming your mutual fund investments, staying invested to reap benefits over the long run is always a good idea. Rather than attempting to time the unpredictable stock market, it is important that one trails the approach of ‘time-in-the market’.

Invest in SIP

What if we tell you that there is a better way to dodge timing the market and yet have the average buying price of mutual funds low. Enter Systematic Investment Plan, or SIP. SIP is an investment tool available for all types of mutual funds, though they are the more effective with equity-based schemes since equity is a more volatile than debt. SIP investments help you benefit from volatility by automatically purchasing more units when prices are low and vice versa, thus lowering the average purchase price. This helps you to use a drop in your mutual fund scheme’s NAV to your advantage. Additionally, it restrains you from going overboard when the NAVs are high by giving you fewer units at those higher levels. Thus, SIPs help to instill financial discipline among investors.

An investor can also consider to make a lumpsum in mutual funds. Understand the differences between SIP vs lumpsum and choose the tool that better suits your portfolio. In order to reap maximum benefit from your investments, it is vital that you diversify your portfolio across different categories of funds. While anyone can invest on their own, but one has to be really knowledgeable about the understandings and work-how of a stock market. However, not all investors need to have experience and knowledge of the markets. An investor can invest in mutual funds with the help of a fund manager. A fund manager advises an individual about the investment decisions. While choosing a mutual fund for your investment portfolio, make sure that it aligns with your investment horizon, financial goals and objectives, and risk appetite.

No matter how the market is performing over the short run, if your goal is to invest for a longer horizon and cater to your long-term goals, you might consider linking your SIP investments to your long-term financial goals. Happy investing!

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Want to Invest but Don’t Know Where to Go? Here Is the Answer

With the pace, this world is growing and technology is improving, investors are vigorously on the move. Most entrepreneurs and naive enthusiasts are keen to step forward in the world of stock exchange and trade but they don’t know where to begin with. This is a subject so confusing that unless you don’t hire a professional manager or someone who has proper know-how about the trends and prospects of the market, you are nowhere in the race. But can you afford a professional at the initial stage of your investments? What if you don’t know where to place your card in the deck or what next move should you play? These are the risk factors that keep most of the talented people out of the actual game.

Mutual funds can help you grow

If you have nowhere to go and are struggling to begin with a satisfactory investment, mutual funds can help you more than anything else. First, let’s get to the basic apprehension of a mutual fund. These are the assets owned by a group of individuals. These individuals may or may not be linked but are responsible to fund for a certain set of commodities. But first of all, you need to hire a professional advocate to manage your investments. Now here comes the solution to all your problems. Even if you don’t know the alphabet of trading and successful investments, your manager can help you swim across this black sea.

What they do is they collect the funds from each investor in the form of stocks or bonds and uses it to either buy certain securities. This is known as an investment. This buying is not done to utilize security. This is done to sell the security at the right time to generate income and profit from it. A common example of this can be of 3 people who collect money and give it all to a real estate agent. This agent acts as their professional manager and buys a property from that fund. This process is usually articulated when the property is low on rates. As soon as its price or market value increases, the agent advises you to sell it. Selling it when its value has increased generates profit and if the investors began with, let’s say 3 Million, now have 4 Million. Each is benefited by 2.5 hundred thousand.

Mutual funds like china fund and other international funds and bonds are beneficial if you are investing at a larger scale. The managers monitor the stock market worldwide and tell you about the best opportunities and where you can invest in the world. This is decided depending upon various factors like which economy has a strong chance of escalation and what would be a country’s state in the near future. Mutual funds can help you have a sound start and a strong base to work unless you feel fit to diverge and understand the stupendous dynamics of the world’s financial sectors.

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Wait for the suitable price patterns

To deal with the high volatility of the currency trading markets, you will need patience. Unfortunately, many rookie traders cannot wait to make money and they execute random trades. And they also do not wait for a suitable market condition to be available. For those traders, you can forget about executing trades with valuable positions. So, they cannot set any valuable stop-loss or take-profit for the trades. If you want to secure the trading business with bare minimum potential losses, your effort must be to secure the investment first. With this tendency, you can save the trading money and also can survive in the business. When you are ready with a decent trading plan, it will be a time to concentrate on profit potentials. Thus, you can improve the trading quality for a profitable trading business.

So, improve your patience for a suitable trade setup every time you are waiting for an execution. Unless you have found suitable positions for the entry and exit of a trade, do not place any order. It will help you to avoid many random trade signals which will return potential losses. Try to stay secured with the trading process and focus on the safety of the investment.

Control your trading excitements

As mentioned at the beginning of this article, many rookie traders are excited to make profits. And when they are too much keen to execute trades for profits, they mind doing not care about any plans. Even a simple money management plan gets neglected by a trader who is looking for profits. You cannot behave like that while participating in the currency trading marketplace. It will only ruin the chances of executing a decent trade in the marketplace. And you will also have a high potential of losing money.

So, decrease the excitement of making money in Forex trading even though you might have access to the best introducing broker like Juno Markets. Try to get some experience in currency trading using a demo account. Then you will be efficient with plans and strategies. You will also be secured with a safe plan for placing orders. The most important benefit of getting a realistic experience is, your excitement will be less for any profit potentials.

Use little money for the trades

It is very easy to lose money from trade while you are participating in Forex. As mentioned earlier, you will experience high volatility in every market. So, there is a chance you will not get a suitable market condition to trade for. Even the entry and exit points which you will predict will not be right after opening an order. So, there is a chance of losing money from many trades. You must learn to deal with and also try to secure the investment. If you can handle a decent trading plan with a simple money management plan, you can secure the investment.

And that is very important for a rookie trader. For trading in Forex, the first plan you need to make is for decent money management. If you can handle it with simple strategies, it will be easy for you to use. So, the trading process will be less worrying for you as well. Thus, you can secure the investment as well as make a decent profit from the trades as well.

Spend sufficient time for trade setups

Less excitement is good for decent trading performance. And you will also get a chance to stay calm for every effective trading procedures. But with patience, you also need to do one more thing. For a suitable trade setup, you need to keep analyzing the markets. Keep analyzing the fundamental influences of the markets until you have a decent price pattern. Then look for a valuable trade setup using technical analysis. And do not forget to look for valuable entry and exit points for the trades. There may be a few important aspects that will control the risk to reward ratio but you will still need to handle the market analysis efficiently.

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Don’t compare the success in trading

Do you know the most important quality you need to succeed in Forex? It is never to compare yourself to others while investing in this sector. Everyone has flaws and secrets. It is not necessary to mention their errors and make them a matter of laugh. An investor can be weak in commodity but excel in analyzing the major price pairs. If he is compared with a person who is experienced in major markets, he is bound to get a low score.

The table turns around when we start comparing the second investor in terms of skill in commodity trading. The earlier trader emerges winner and this is how comparison can give us a false image of the reality. In this article, we are going to understand why comparing success with different individuals is never a good idea. This prevents us from obtaining the full picture. If we only see the tail of an elephant, we might mistake it for a rope. Similarly, the broader picture is required for correct interpretation of the volatility.

Wrong impression

The first problem is people do not get accurate information. Instead of planning a successful strategy, they are given the false data which lead to failure. If you are thinking of the misfortunes, it will be only a misconception. Focus on learning the basics by practicing consistently to develop skills. When the moment comes, this will automatically reward you for your hard work.

Focus on consistency

You can’t make a profit in the options trading industry without knowing the basics of this market. As an Aussie trader, you have to understand the complexity associated with options trading business. You might have a huge amount of money but still, you may lose your investment. Unless you work hard to learn from scratch, it’s really hard to make a consistent profit in the trading business. Push yourself to the edge so that you can make a decent change in your trading career. Write down the mistakes and try to find the faults in your system. Take your time to develop your skills.

Every person is unique

The greatest lie in the world is telling everybody can do everything. Not every wood is cut to become furniture. Some take place in houses whereas some are used to make into expensive decorations. This does not decrease the value, the woodcutter knows every part has different usefulness. Just like that, not every trader is expected to learn the tricks of currency trading. Take time and if there is no improvement, switch the market. There are minor pairs, oil, and gold that can be traded in Forex. All these offer the same benefit, the commodity sector offers higher rewards than all the pairs. Try testing the luck and who knows you can become the next legendary commodity trader. If profit is considered as a fruit, the time it takes to ripen varies. Many will get to taste early while others may need to wait longer. Never give up, keep pursuing your dreams and they will come true.

Distracts from goals

It is nothing new to say that time is needed to properly understand currency trading. Scammers spread rumors and to the nervous novice to make money from their confusion. They try to distract them, sell them poor methods and become rich. Never deviate from the targets in Forex. If there are continuous failures, write down the mistakes in a diary. Check the flaws, try to improve your plans and become a better trader. We applaud professionals for their achievements but never know what they have had to get through to reach this level. Without dedication and self-confidence, it is not possible to win.

This depends on skills

If performance improves, the result will also start to get better. It is a logical formula, therefore, people focus on developing knowledge. Only a fool will scold himself for not making a profit. A wise person will take time to make a profit.

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1st Fidelity Reserve is all set to expand it’s NRA sponsorship

Many people would already be knowing about the pioneer of official bullion and real metals, i.e., 1st Fidelity Reserve. If you’re someone who loves to collect rare coins and metals or wishes to showcase it as a part of their royalty, then 1st Fidelity Reserve can be the ideal destination as now it’s all set to expand it’s NRA sponsorship. This will help this company in establishing itself as the leading sponsor of the NRA National Action Pistol Championship which is also commonly called as the NRA Bianchi Cup. This tournament will take place in Columbia from May 26-29, 2010. You can witness this company sponsoring the practical event and earlier it has also sponsored the NRA National Pistol Championships in 2009 at Camp Perry. This company is known for its knowledge of making an investment in the diverse form of collectible coins and people all across the nation trust it for its commendable services and offerings.

What is 1st Fidelity Reserve famous for?

1st Fidelity Reserve has been the leading provider of rare coins and bullions to numismatic professionals and collectors. This is a company based in Beaumont, Texas and is known internationally for investing in collectible coins. It has also emerged as the market leader in certified coins of United States. The company is also known for providing informative newsletters, publications and educational materials on the hobby of a coin collection. With exemplary services and great offerings, it has been leading the market of rare coins, and all their products come with hundred percent authentication and quality. This is done to ensure that whatever is been delivered to you is quality checked and hundred percent original without any adulteration or mixing of other metals that can degrade the quality of these precious coins.

NRA sponsorship will add marvels to the positive impression of 1st Fidelity Reserve

Their recent expansion to sponsor the NRA National Action Pistol Championship will not only be beneficial in creating a positive image of the company, but it will also fill the clients of the company with happiness regarding this decision. Mike Krei who is the director of NRA Bianchi Cup has expressed his happiness over this association and appreciated the support that 1st Fidelity Reserve has extended to make these events successful. This generous support will not only help in the brand reputation of this company but will also draw the attention of many more new clients. Every company tries to expand its horizon by doing community and public welfare activities and this decision of sponsorship taken by them will definitely benefit it in multiple ways.

The great sense of achievement which they have showcased by grabbing this sponsorship is inexpressible. All those who’ll be attending this championship will not only get to know more about this company, but it will also increase its outreach through the media coverage of this event. So are you excited for this tournament and the achievement? Let’s see how 1st Fidelity Reserve progresses ahead towards success in the coming years with new associations.

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5 Mistakes You Should Avoid While Doing Free Trading

Free trading has introduced a newer class of people to the stock market. The ease of investing and transfer of stocks have made it popular among the traders. More and more people are joining this bandwagon to try their luck in the stock market in the expectation of securing high rates of profit. There are many people who start free trading without any knowledge in the field and have unrealistic expectations of the market. They are easily demotivated by initial losses, and their lack of knowledge in the field leaves them prone to losses. There are also other factors which can cause losses to the Free trader. There has been a lot of criminal activities that have emerged due to the growing popularity of free trading and the number of first users of this facility. Notable scams have surfaced on the internet which includes spoofing and phishing sites that will actually appear to be a legitimate site but used primarily to trick persons into revealing their user ID and password which may be used to access and steal the money in your account. Click here to know more:

The 5 major mistakes that you should avoid while free trading which is explained below.

  1. Trading without any market knowledge

This is a major mistake that all newcomers do. Gain knowledge on the field of stock trading before actually researching on it. There are various ways in which you can actually experience stock market trading like Moneypot and Investopedia without actually investing money into it. These stock market trading simulators can be used to learn various strategies that you require to become a successful free trader.  You can also access various web seminars or attend classes that are meant for beginners in the stock market field to learn the tricks of the trade. One can also try their luck in forecasting and predicting the stock market from their homes by learning various tools that are available in the market.

  1. Think with your head and not with your heart

Another major rookie mistake that is seen commonly is that people are new to free trading buy with their hearts. They choose to prefer brands and companies that they have a connection with and invest heavily in them. This is the difference between an experienced and an amateur free trader. One should always know that there is no place for personal attachment or emotional attachment in trading. There are also people who develop an emotional attachment with stocks that they acquired and do not sell at the right time. This is also a mistake.

  1. Don’t stop investing when the market falls

There are people who stop investing when the market falls. This is a very bad move. There is a very high chance of getting better profits when investing in such stocks. One should always know that every stock goes up and down in value and there is nothing wrong about it.

  1. Don’t put all your eggs in the same basket

Stock trading should be done with spare cash that you don’t require anytime soon. It is not a fixed deposit that you can expect regular income from and so should be cautious while investing. Also, try to invest in a broader portfolio to reduce risk.

  1. The expectation of fast returns

Stocks have risk and uncertainty associated with them. There are many people who try their luck with stock trading to make a quick buck. In reality, the chances of this are unlikely, and the risks are too high. So, invest in stocks that have low or moderate risks associated with them.


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A Background to Online Trading – How it Began

Online trading has become one of the most popular ways to integrate financial ability and intelligence into the market in one of the most convenient and accessible vehicles for investing ever produced.

It is true that the digital age has indeed made our lives so much faster, and companies such as Weiss Finance have truly capitalized on the new forms of trading to provide one of the most stable and comprehensive platforms for budding and seasoned traders alike to make their trading dreams come true.

 The History of Online Trading

What people started off calling “investing online” soon came to be known as “online trading”. It is simply a process within which traders and investors will purchase and sell various securities through an electronic network, generally through a brokerage firm which has provided an online platform.

This innovative kind of trading and investing quickly became the accepted means for trade towards the end of the millennium in the late 90s. Today, there are many brokerage firms that offer online trading platforms.

Before online trading became a thing, obviously people were limited to placing orders through a relevant stockbroker. This would generally be accomplished by calling an office, or meeting with a stockbroker in person.

The relevant brokerage firm would then enter your order into their system, which was connected to exchanges and trading floors. It was only in 1985 that Trade*Plus began offering a retail trading platform through Compuserve and America Online.

In the beginning of the 90s, one of the founders of Trade*Plus initialized a new subsidiary company known as E*Trade Securities, Inc. By August 1994, investing online was now starting to see a lot of growth and development.

Some Real Developments

 It was in 1994 that K. Aufhauser & Company, Inc. finally provided a medium advanced enough to permit the first form of online trading which was known as “WealthWEB”. Such an investment allowed for the proper development of online trading towards our modern understandings of internet-based market activity.

Then there was also they nifty electronic communication network, which allowed the direct trading between investors.

Investors and traders could suddenly bypass the middleman and skip the whole process involving contacting the stock broker. You could now just punch in your order using the internet. That is not to say, however that brokers were completely cut out – far from it. You still had to go through the right channels in order for your transactions to be approved.

The Price of Freedom

Obviously the market would get out of hand if things were not being regulated by the proper authorities – and an economic cataclysm could easily result from the wanton mismanagement of stock trading through a medium as infinitely accessible as the internet could easily lead to chaos if people were left to their own devices.

Stockbrokers still need to protect their good name, and have a duty to regulate the market, making sure that unlawful activity does not permeate  into the civil and decent proceedings of standard market activity.

Knowing how volatile the more unsavory forces of the internet can be, the powers that be in the market and online trading development began implementing security software and measures in general that would ensure that nefarious hackers and the like could never break into linking servers.

Different Names, Same Processes

In the United States, online brokers are known as discount brokers. In Asia and Europe, an online broker is known as a high-net-worth individual. Such a high level of popularity can be linked to the quick and simple nature of online order fulfilling.

Then there are also the far cheaper rates seen with online trading, as opposed to those witnessed with real life brokers. Such affordable rates will obviously influence more people to go for the online choice.

Within the United States, you will generally need to have a fair amount of capital put aside in order to deal with the various firms and their fees. Obviously the more notable and established firms will charge even higher rates.

With such sophisticated digital tools available to the common person, one could almost say that physical firms and their agents are now no longer as needed as they were in the 20th century.

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Day Trading: The Ins and Outs of Day Trading as a Career – the debt hawk

Are you considering the option of day trading as a full-time career? I believe that, and in my experience, it is an option worth considering as there are several benefits to investing on the global financial markets as a career. Let’s start at the beginning by explaining what day trading is, and how you go about investing in the global financial markets.

There are many questions that need to be asked and answered around the whole concept of day trading. However, as many sources note, there is a fair amount of controversy surrounding this type of financial market investments. Consequently, it is known as one of the most misunderstood topics on the global financial markets. In this article, I hope to extrapolate on the concept of day trading as well as clear up some of the more obvious misconceptions.

What and why?

Day trading is the regular practice of buying and selling one or more security positions within a single trading day.” – Michael Lewis

It can occur in any of the various financial markets; however, it is most commonly used amongst options and Forex traders. Essentially, day traders employ short-term trading strategies to capitalize on the small price movements that their chosen assets make during the day. In other words, they make a profit from the difference between the buying and selling price of an underlying assets, and they tend to provide much of the liquidity in the markets.

Day traders keep the markets moving by their utilisation of computer-assisted investment software in order to place their trades. You will find most day traders sitting behind their computers keeping a close eye on the price movements of their chosen assets.

When and how?

Day trading is a short-term activity; its risk profile is lower than long-term trading strategies. Because trades are opened and closed in the same day, investors are not impacted by what happens between when the markets close for the day and open the next day. Long-term investors run the risk of going to bed at night only to discover that the market has dropped overnight.

It is also important that day trading does not get confused with pure speculation or the means of providing a gambling high. Professional day traders (who trade for a living) are highly skilled, they have an in-depth knowledge of the global financial markets, and they how to place successful short-term trades.

In case you are interesting in considering day trading as a career, here are several tips on how to go about ensuring that you are successful in your new venture:

Choose your online trading partner wisely

The advent of the information age has allowed for a plethora of online trading brokers to pop out in the online marketplace. Some are bona fide companies who take pride in ensuring that their clients are successful when trading in options via their online investment platform, while other companies are fly-by-night brokers whose interests are purely self-serving.

Educate yourself

This point cannot be stressed strongly enough. You cannot trade in securities, options, indices, or Forex if you do not have an intimate understanding of how online share trading works. You need to learn what the different investment strategies involved in day trading are, how to research the price movements of your chosen assets, as well as how to read analytical statistics presented in graphs and charts. As a means to this end, your online broker should provide a comprehensive education centre as well as daily analytical reports to help you learn to trade properly and to make the right investment decisions.

Your broker’s education centre should consist of at least a trading academy with suitable training material for everyone from beginner to advanced traders. It should also consist of a list of tradable assets that the broker offers, a FAQ section, as well as a glossary.

Stick to your strategy

Once you have done the requisite research and decided on an investment strategy, it is important to stick to it. It does not help changing your mind halfway through the trade. This will end up costing you money as well as knocking your confidence in your ability to invest wisely as a day trader.

Final Thoughts

Day trading, or any financial market investments is not for the faint-hearted; however, if you arm yourself with knowledge and do not vacillate over your trading decisions, you will end up making a success as a professional day trader!

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How Does Estate Planning Work?

Long term financial planning is important. After all, there are lots of variables you have to consider; and that is why it is important to plan your financial future carefully.  Of course, there are also lots of different ways to plan for the future concerning your finances.


The Rothenberg Group estate planning involves looking at various pre-prepared tasks that will help you better examine the outlook of your assets in the future. In fact, estate planning can even ensure that the wealth accrued in your life—regardless of its size—is managed appropriately, even after your death.  Estate planning helps you to map out a path of benefits for your investments, financial accounts, and other assets at various places in the future.  This, of course, includes the bequeathing of assets to heirs or other third parties, such as charities or associated organization.


Breaking down the process of estate planning, it might help you to know that when people talk about their “last will and testament,” this is actually what they mean. That’ll give you a better idea what goes into estate planning.  OF course, the actual “will” is only a small part of this process.  More specifically, estate planning involves:

  • creating a will
  • establishing annual gifting that can be used to help reduce estate taxes
  • establishing an executor of your funeral arrangements
  • establishing a guardian for any living dependents
  • establishing power of attorney to help manage your account(s) and to direct other assets and additional investments
  • establishing trust accounts—in the name of one or more beneficiaries—to help you limit estate taxes
  • make a database of your dependents as well as other beneficiaries of investments, as well as life insurance
  • Pre-arrange your funeral or set up a fund for funeral arrangements


Fundamentally, estate planning acts similarly to life insurance. It is not entirely fascinating, as a topic and, unfortunately, you don’t really get to enjoy the benefits of it (because only those who are left behind after you pass will receive the payouts).  In the same way that you need medical insurance just in case you get sick and you need auto insurance just in case you get into an accident, you need life insurance for the inevitable event of your passing.

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Understanding the Basics of Options Trading

Options are flexible financial instrument. But they can also be risky and complicated. Apart from losing your entire investment, a number of strategies can expose you to unlimited loses. That is why you have to understand some basics and strategies for options that are appropriate for beginners.

What is an Option

Options are contacts that give the owner the right to purchase or sell an asset at a fixed price for a certain time period. This period could one day to two years, depending upon the option. The option contract’s seller is obligated to take the opposite side of the trade if and when the owner exercises the right to purchase or sell the underlying asset.


Knowing the Options Lingo

Options trading can be a bit jargon-y so consider getting your definitions straight. Below are some of the terms that you will come across within the options field.

  • Puts and Calls. Standard options can be call options and put options. It is necessary to understand the difference between these to get started. For every call contract you purchase, you can buy 100 shares of a certain security at a particular price within a certain time frame. Meanwhile, for every put contract you purchase, you can sell 100 shares of a certain security at a specific price within a particular time frame.


  • Long vs Short- In the money world, long does not have to do with the amount of time or distance you hang into security. Rather, it implies that own something. When you purchased a stock or a call or put, you are long in your account. Also, you can be short in your account. Thus, you have sold a stock or option without owning it.
  • Strike price. This is the pre-agreed price per share that stock is likely to be purchased or sold under an option contract’s terms. For a number of traders, this is the exercise price.

Understanding Volatility

  • Historical volatility-This is the amount of stock price that fluctuated over a period of one year. The figure refers to the past price data.
  • Implied volatility- This is determined through the use of an option pricing models. So even if the marketplace is likely to make use of implied volatility to expect a stock’s volatility in the future, there is no guarantee this projection is correct.

In case there will be a court decision or earnings announcement coming up, traders are expected to change trading patterns on some options. This drives options price down or up, independent of the movement of the stock price. The implied volatility is obtained from the options’ cost. Consider an options trading newsletter to learn more about this.

Speaking a Bit Greek

  • Delta-This is the amount an option moves based upon a dollar change in the underlying stock. In theory, when an option has .50 delta, when the stock moves $1, then the option must move about 50 cents.


  • Theta-This refers to the measure of time decay or the amount the price of an option changes.
  • Vega- This is the amount of the price of an option will change in theory for a one-point change of the option contract’s implied volatility. 

Author Bio – Kim Klaiman is a full time options trader. He offers options trading newsletter to his avid readers.

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