Trading foreign exchange, commodity futures, options, precious metals and other over-the-counter or on-exchange products carries a high level of risk and may not be suitable for all investors. This material is meant to be used solely for educational purposes and is not meant to provide trading advice.
Beginner Level
- Chapter 1
- It All Begins with a Handshake
- Call & Put Options
- Size Matters – Contract Size
- Currency Pairs
- Long and Short Position
- Chapter 2
- FX Options Expire
- European and American Style Options
- Bid and Ask Prices
- FX Call and Put Contract Specifications
- In the Money, At the Money or Out of the Money
- Intrinsic and Time Value
- Payoffs and Cash Settlements
- Chapter 3
- FX option profits and returns
- Risk
- Naked versus covered or hedged short option positions
- Margin trading leverages potential gains— and losses
- When you trade on margin
- Margin requirements for FX options vary
- Level Review
Intermediate Level
- Chapter 1
- Multi-leg bullish and bearish strategies overview
- Spreads (Credit spreads and debit spreads, Vertical call spreads, Vertical bull call spread, Vertical bear call spread, Vertical put spreads, Vertical bear put spread, Vertical bull put spread)
- Chapter 2
- Spreads (cont) (Calendar spreads, Market-neutral call calendar spreads, Bullish call calendar spreads, Market-neutral put calendar spreads, Bearish put calendar spreads, Market-neutral butterfly call spread, Market-neutral butterfly put spread, Bullish butterfly call spread, Bearish butterfly put spread)
- Chapter 3
- Beyond Spreads: Straddles and Strangles
- Straddle
- Strangle
- Going short versus going long in spreads, straddles and strangles
- Types of orders (Market orders, Stop orders, Limit orders, Order type durations for GTC, EOD and GTW, Contingent orders, OCO: One cancels the other)
- Level Review
Advanced Level
- Option values and risk management
- The Greeks (Delta, Gamma, Theta, Vega)
- Risk Management
- What Is Hedging?
- How Do Investors Hedge?
- Advanced techniques
- Level Review
Strategies for Spot Traders
- Using Long Options as Protection
- Using Short Options as Limit Orders
- Using Short Options as Stop Orders
- Using Options to ”Collar” a Spot Trade
Advanced Options Strategies
- Bearish Options Trading Strategies
- Buy Put
- Sell Call
- Bear Spread
- Bear Diagonal Spread
- Put Hedge
- Bullish Options Trading Strategies
- Buy Call
- Sell Put
- Bull Spread
- Bull Diagonal Spread
- Neutral Options Trading Strategies
- Sell Straddle
- Sell Strangle
- Long Butterfly
- Calendar Spread
- Covered Call
- Volatile Options Trading Strategies
- Buy Straddle
- Buy Strangle
- Short Butterfly