Trading – Variations Between Futures And Options

Futures and options investing can be a high-risk business and must only be carried out with risk capital, which cannot change your way of life in case the investment is lost. The potential to earn profits is practically limitless, whilst the potential for loss is just as limitless. This would mean that when you’re on the losing side of a futures trade it is possible to lose even more funds than you have in the margin and will be accountable for the whole contract amount due to the highly leveraged dynamics of the investment. You have many approaches to limit your risk, for one you can use options like a hedge against the negative price movement from your position, be it on the short or long side.

Variations between trading on futures and options market

Premium versus margin

Options: Whenever you purchase an option you aren’t recommended to set up any margin as you are buying the option on a fixed price also called the premium. The premium can decrease over the lifespan of the option when the underlying price for the commodity moves towards your position or stays flat. In case the option is not exercised prior to the expiration date, you can lose the premium that was paid, plus the seller for the option can profit from the amount paid for the premium.

Futures: Whilst the premium for futures option can waste away over time the futures agreement will not. It is possible to consider the margin on the futures agreement as earnest money which will cause you to responsible for the entire amount on the futures agreement. This is extremely risky when an offsetting situation is not opened in order to help safeguard you from a negative movement in price.


When it comes to options the purchaser will only be limited by the amount that was paid for the premium, therefore the risk will be regarded as limited. For futures trading, regardless of whether you buy or sell a futures agreement you will be responsible for more than only the preliminary margin that you were instructed to make for the investment. This makes this kind of trade risk limitless.

Expiration Dates

The main difference between trading on futures and options would be the expiration date. In case you had been planning to exercise an option in order to control the underlying contract for futures, this must be delivered roughly 30 days prior to the underlying futures is arranged to be delivered. Note that this is applicable to the physical delivery of commodities and will not be the same for indices.

How To Know If You Are Starting A Home Based Business That Works

When starting a home based business, the first thing people want to know before they invest their time and hard earned money is “Is this a home based business that works?” With so many different home biz ops available on the net, it is hard to tell which ones work and which ones are just a waste of your time and money. In this article I’m going to talk about some things to look for in a home business opportunity to help determine whether or not it’s going to work for you.

Two Things To Look For When Looking For A Home Based Business That Works

1. The first thing you can look at when searching for a home based business that works is the track record and the start up cost. There are literately hundreds of new home biz opportunities popping up that are very appealing because they have some extremely low start up costs, but they are so new that there is no way of telling whether or not people are actually making money. In addition to that, how much money can you really expect to make in a business opportunity that’s only $25 to start? Chances are you won’t be able to quit your day job.

It’s important that you look for an opportunity with a proven track record of people being successful. If you are looking at an opportunity where other people are having success, then the chances of that home business opportunity working for you are already pretty good.

2. The second thing you should look at when searching for a home based business that works is whether or not there is a marketing system you can plug into. Out of all the reasons people fail in the home business industry, this is one of the biggest. No matter how great any home biz opp may sound, if doesn’t provide you with a proven marketing system to plug into then chances are it’s not going to work for you.

Learning how to effectively market your home business and generate leads on daily basis is the biggest struggle faced by someone who is starting a home based business. Not to say that you can’t learn how to do this on your own because you can, however it will take months, or in some cases even years. If you want a home based business that works, it’s important that you choose an opportunity that is going to provide you with a complete A-Z marketing system.

So if you are searching for a home based business that works, look for these two things. Of course there is no way to be 100% certain that any home business is going to work, but if it has a proven track record and provides you with a marketing system, the chances of it working are in your favor.

Website Benefits – How A Website Can Be Useful For Your Business

A website is an essential tool for your company. Not only it is very economical, it is helpful in getting good probable customers. It is easily accessible 24 hours and has global availability.

So you have a new business and want the world to know that you are a professional company who is providing specialized products or services. There is no better medium to announce your arrival by launching your own company website. With the arrival of internet it has become very imperative to have a web presence. A website is one of the most cost-effective mediums to showcase your products and services.

A website enables you to reach your potential clients 24 hours a day all days of a week, throughout the year. By having a website your reach is not just limited to a particular area or city. A website has global reach and thus provides you international exposure. A website contains all the information about your products and services and thus enables the potential customer to have an idea of your company. Online forms can be used to gather information and queries of your potential clients. Investing on a website is the wisest decision you can make to promote your company.

Compared to other mediums like print, television radio a website is far more cost-effective, more informative and can be easily updated. Another great benefit of having a website is that it puts you on the same platform as any other company in your business. You can compete against companies which are several times bigger than yours by having a good informative website. A company with website looks far more professional than the ones who don’t have a website. So stay ahead of your competitors and invest in good website for your company.