What is a future? It is a contract between a buyer and a seller to BUY/SELL a certain quantity of an asset in future at a price agreed upon today. The contract expires on a pre-specified date. Terminologies used in Futures segment: Contract size (Lot size): The number...
Filter Content Vault
How Do Stock Options Work
Buying and selling stock isn’t just limited to putting in orders for whatever the price is at the moment. You can actually take advantage of trading stock options – or a financial instrument that gives you the right to purchase or sell an asset at a future date. Stock...
Simple Steps to Become a Stock Trader
This post will cover the basics of getting started to swing or day trade stocks. If you’re completely new and have no clue about the stock market, that’s ok. Following the steps below will help no matter what skill level you’re at. Learn how to Read Charts....
Every Stock Trader Should Know
Trying to become a master at anything takes thousands of hours of study and research. No matter how long you’ve been trading stocks you always need to go back and remember the basics. Here are the most important things every new and seasoned stock traders should...
Is it Better to Buy Options Than Stocks?
The classic way you make money in the stock market is to buy low and sell high. Of course, there is always the possibility that you will buy high and sell low, resulting in a loss. You can limit your risk while maintaining unlimited potential gains by investing in...
How Much Money do you Need to Trade Stocks?
The #1 question we get asked and also for most, the biggest barrier to the world of trading stocks, how much money do you need to start with? We think its the biggest misconception about trading because most people think that you need a lot of money to make money. You...
Finding the Right Key
Probably the biggest misconception out there about trading is how easy it will be for a new trader to develop the skills necessary to be consistently profitable. Most people think of skill acquisition as a steady process that will see a trader going from strength to...
DTI Trading Education
Learning how to invest in stocks has never been so easy! There's no reason why learning how to trade the share market has to be complicated. At Diversified Trading Institute we're here to make it easy and guide you every step of the way. With a range of courses to...
Differences Between Stock and Future Options
There are many important differences between listed options based on an underlying stock, and options on a futures contract. With a stock, the option is tied to 100 shares of stock and is a derivative of those shares. A futures option, however, is a type of derivative...
Building and Defining your Trading Edge
It's simple - if you don't know what your trading edge is, then you probably don't have one. If that's you, then you are basically a gambler because you're most likely allowing the market to hold the edge and are hoping you can beat the odds. Even if you get lucky...