Welcome To Options Trading For Newbies



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Options Trading For Newbies
FUTURE, FUTURES CONTRACT - A standardized, exchange-traded agreement specifying a quantity and price of a particular type of commodity (soybeans, gold, oil, etc) to be purchased or sold at a predetermined date in the future. On contract date, delivery and physical possession take place unless the contract has been closed out. Futures are also available on various financial products and indexes today.
GAMMA - Gamma expresses how fast Delta changes with a one-point increase in the price of the underlying. Gamma is positive for all options. If an option has a Delta of
45 and a Gamma of 10, then the option’s expected Delta will be 55 if the underlying goes up one point. If we consider Delta to be the velocity of an option, then Gamma is the acceleration.

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