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143 signals were traded since 2016-20
only 6 red

Glossary


Backwardation

Backwardation is market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold quotation for June is $400.00 per ounce and that for December  is $390.00 per ounce, the backwardation for five months against June is $10.00 per ounce. (Backwardation is the opposite of contango).

See Also:

Contango: Contango is a market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery month; the opposite of backwardation.

Delivery: Delivery is the transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. It is the tender and receipt of the actual commodity, the cash value of the commodity, or of a delivery instrument covering the commodity (e.g., warehouse receipts or shipping certificates), used to settle a futures contract. Each futures exchange has specific procedures for delivery of a cash commodity. Some futures contracts, such as stock index contracts, are cash settled.

Delivery Month: Delivery Month is the specified month within which a futures contract matures and can be settled by delivery or the specified month in which the delivery period begins.

Futures: Futures (also called Futures Contract) is a legally binding agreement to buy or sell a commodity or financial instrument at a later date. Futures contracts are normally standardized according to the quality, quantity, delivery time and location for each commodity, with price as the only variable.

Futures Price: Futures Price could be referred to the price of a commodity for future delivery that is traded on a futures exchange or Futures Price could refer to the price of any futures contract.

Low: Low is the lowest price of the day for a particular futures or options on futures contract.

Quotation: Quotation is the actual price or the bid or ask price of either cash commodities or futures or options contracts at a particular time.


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Risk Statement:

Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.

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