How to do basics of stock market trading in

The hope" is the stocks in that basket will increase and therefore the value of your shares in the mutual fund will also increase. However, if the stocks in that basket decline in value, there goes your investment. In our example of XYZ, your purchase price is 19 and youre willing to sell your shares at 20, which is the strike price. As the call option seller, you are paid guaranteed income in the form of a premium. View a tag cloud area that highlights common trading terms with the most commonly requested terms in large or highlighted print. Step 3, enroll in courses at the Trader Training School. The easiest way for you to grow your money in today's world is by investing in stocks. Investing In Stocks, here's how investing works: When you buy a stock, you are buying a small portion of a company. Using 500 shares and selling the 20 call option generates:.75 x Using 1,000 shares and selling the 20 call option generates:.75 x 1,000 750 Using 10,000 shares and selling the 20 call option generates:.75 x 10,000 7,500 WOW!
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