Calculating potential profit or loss on a variety of trades demonstrates that you often operate on thin margins. The judgment call as to whether a particular strategy will or will not be profitable is often based on consideration of a single option contract. In practice, you can cut your transaction costs considerably by using multiple
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Forex (Currency) »
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Pros and Cons of FOREX Arbitrage
Using triangular or transitivity arbitrage strategies on the FOREX market has one very salient advantage: predetermined profits can be realized if the trades execute smoothly. Unfortunately, the disadvantages of this strategy are numerous: Higher transaction costs. The trader must pay the bid-ask spreads on three separate trades. Higher margin requirements. Roughly three times the margin
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Stocks and ETFs »
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Using Absolute Return Funds to Hedge Against a Falling Stock Market
Buy low, sell high…right? Not necessarily. When many people think of investing in stocks, they think of purchasing a stock at one price and later selling it for a higher price to make money. Others may consider the dividends paid by some companies as a great way to make a return on an investment when
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Financial Advisors »
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Dynasty Trusts…Not Just for the Wealthy
With the words “trust fund” often come thoughts of entitlement, wealth, inheritance or other characterizations associated with people or families perceived to be wealthy. In the past, trusts have been used for many reasons, but the most typical use has always been to avoid or minimize estate taxes and leave as much money to heirs
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