Add new comment

The Price of Holding a Position

Posted in Traders' Delusions, Submitted by Trading Critic on Fri, 2006-09-22 00:10.
When you trade with derivatives, especially utilising Contracts For Difference's (CFD's) your break even price is dynamic

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.

add new comment | read more >>

Reply

*
*
The content of this field is kept private and will not be shown publicly.

*

  • Allowed HTML tags: <a> <em> <strong> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <blockquote> <b> <h3>
  • Lines and paragraphs break automatically.