Derivatives

When you trade with derivatives, especially utilising Contracts For Difference's (CFD's) your break even price is dynamic.

If you trade with options and similarly with warrants, there is time decay to consider. With CFD's as well as forex contracts, the price of holding a position is much simpler than dealing with delta's that define decay with derivative instruments such as options.

Read the full article: "The Price of Holding a Position"

You may have heard of traders making a killing on the markets or traders getting killed over their financial balances in the stock markets. You may have thought that the stock market was a place to make a fortune. Or you may have thought the markets were too risky. But the fact is more than half of the Australian population have a direct or indirect ownership of shares, either through direct ownership, derivatives or through managed funds and superannuation. And a growing number are share trading with the boom of internet brokerage, information accessibility and the boom in financial services and awareness. Share trading may be a dream job for some, having unlimited freedom; no bosses. But trading stocks for a living is not easy.