Uncovered Options Trading System
Cash Market: Cash Market is a place where people buy and sell the actual commodities (i.e., grain elevator, bank, etc.). The market for the cash commodity (as contrasted to a futures contract) taking the form of:
1) an organized, self-regulated central market (e.g., a commodity exchange);
2) a decentralized over-the-counter market;
3) a local organization, such as a grain elevator or meat processor, which provides a market for a small region.
Transaction: Transaction is an entry or liquidation of a trade.
Labels:
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.