Options Trading 101: Stock Options Trading Basics

Options Trading 101: Stock Options Trading Basics

Options Trading 101: Stock Options Trading Basics I firstly remind below the basics of Options for the rest of the article to make sense for the readers who do not have opinions about Options. There are numerous underlying assets that can be traded as an option contract from stocks to FX products, from equities to commodities and many more. In this article, I summarized the basic concepts of stock options trading.  An Option is a contract allowing the recipient the right, but not the obligation to transact a known transaction (buy or sell) of a known asset at a known price in a known pre-defined time frame.  Options that can be exercisable at any time during the time period are called “American Options”.  Options that can be exercised only at the end of the period are “European Options”. Other important characteristics of Options:Expiration Date: The date an option’s final value is determined and can no longer be traded. Stocks typically have options with...
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The Importance of Philosophical Thinking

The Importance of Philosophical Thinking

The word "philosophy" is one of the most difficult to define. This is the reason I stay away myself from some philosophy books, blogs and websites which are trying to define philosophy concisely or even with a sentence. It's not that realistic and against the nature of philosophy. What is realistic that throughout the centuries philosophers generating ideas on numerous fields and from countless viewpoints. In general concept the Greek philosopher Thales is known as the first philosopher who basically investigated the originating substances of matter. Thales was interested almost every field of natural science. His arguments and findings initiated subsequent studies and illuminated the development of both natural sciences and philosophy. His questioning approach to understand heavenly phenomena was the beginning of Greek astronomy, or just consider his best known geometrical theorem called "Thales Theorem". So Thales not only made a great contribution to the natural sciences theoretically he also led the many way of thinking. Philosophy is an intellectual...
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The Importance of Decision Making – How Biases Affect Our Brain

The Importance of Decision Making – How Biases Affect Our Brain

  One of the things we do most in daily life is to make decisions. Just imagine how much decisions we make in a day, and probably it’s the second thing that we do most frequently after breathing. Some of the decisions we make are very important and decisive for us, while others are less important. In other words, the returns of our decisions are quite different from each other and each of them has their own marginal utility function. So we need to be more attentive, rational and devoted in our decisions. At first we need to evaluate accurately, how important and what is the possible outcomes giving the right and the wrong decision. This topic was diffusively explained by Daniel Kahneman and Amos Tversky in “Prospect Theory: An Analysis of Decision under Risk” in 1979. In 2002 Daniel Kahneman shared the Nobel Prize in Economics with this theory but unfortunately Amos Tversky had died by that time. In 2011...
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