What is spread trading? How/Why is it better than regular trading? Why should I spread trade equities?
I intend on using the new spread trading software that is hitting the Indian Markets soon and want to know whether it's worth the trouble.
Spread trading is good for non directional trading..Your have limited risk and good potential. Your gains are also limited.
It is also a cheaper way to get into a position.
2 Responses to “What is spread trading? How/Why is it better than regular trading? Why should I spread trade equities?”
Its not worth th money. You are making two bets with options, one that the stock will go up, and one that it will go down. By that you are hoping for a very large move in either direction, enough to cover the price of the options plus a profit. Options are short lived. If there isn't a large move, you could lose all your money.
If it were as easy as using a trading program, everyone would be millionaires.
Comment made on March 8th, 2009 at 5:35 pmReferences :
Spread trading is good for non directional trading..Your have limited risk and good potential. Your gains are also limited.
Comment made on March 8th, 2009 at 5:54 pmIt is also a cheaper way to get into a position.
References :
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