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Forex Trading Articles

Strategies Managing Options

All the forex traders might be aware of the options trading tool applied by the traders to hedge against the risk of the price value fluctuations of the currency pairs so there is no need to go under that concept to elaborate the options.

Let’s begin with small introductory definition of option; option is a contract which gives traders right to sell off or buy the desired quantity of underlying asset or financial claims on some specified future date at the fixed price on or before the expiration date of the option contract and are not the obligation that is must to conduct.

Option strategies are implemented at the Forex market for the attainment of the three objectives:speculation, hedging and spreading.

The speculation of option involves the long and short of an option without any position in the underlying asset at the forex trading platform.

Hedging involves an attempt to control or manage risk by combining the purchase or sale of the specified asset or financial claim with some position acquired at the forex trading platform.

Spreading is the strategic tool of option which is applied within the options of same type that includes simultaneous buying or selling of same type of option.

The combination of call and put option applied in varied forms can be a good idea of option strategy at the Forex trading platform that provides an ability to manage the trades rationally.

The other option trading strategy that are very common at the Forex trading platform includes covered calls, straddle, protective put, spreads like bear spread, bull spread, butterfly spread, strangles, strips and straps.

Lets look into the option strategies of covered calls, which is the first choice of the traders to apply at Forex trading platform.

Covered calls: It involves the purchase of the specific quantity of the underlying asset like shares or selected currency pairs and sale of the desired call option on that selected currency pair or other asset.

The position place at the Forex market in such way is refer to as covered because the investor owns the share or the currency pair and the right to deliver the pair on the call option, which he has sold and as it is exercised by the option holder.

In covered call strategy, the investor is willing to sell the underlying asset at a fixed price, limiting the profits, if the price of the selected pair rises by the amount of the premium on sale of call options. This strategy can be formulated as [(+s) + (-c)] where’s’ represents the buying the pair and ‘-c’ represents the selling a call option.

This is the information about the covered call option trading strategies applied at the Forex trading platform to manage the Forex accounts.

General Business

Managing The Wholesale Distribution Business When it is on Its Peak

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Before plunging on to main topic it would be quite appropriate to define the roles and duties of wholesale distributors. A wholesale distributor is a person who is performing the roles of both wholesaler and distributor. Wholesaler is the person who purchases products in bulk quantity from manufacturers and stores the products in his warehouse, later he resells those products to retailers, and he is actually a middleman between manufacturer and retailer. Distributor is a person whose duty is to get products from wholesaler and deliver or distribute them to retailers or customers. A distributor is a middleman between wholesaler and retailer. A wholesale distributor is a person who performs duty of both wholesaler and a distributor. He subtracts the separate middleman (distributor) and merges himself into it to reap greater profits.

A wholesale distributor is actually performing the duty of two people and it becomes very difficult to manage it when the business is on its peak. To properly manage and perform both duties one should have greater capital money, bigger warehouse, latest transportation service and greater manpower. In wholesale business alone, you are in contact with retailers and manufacturers and that’s it but in wholesale distribution business you will be in contact with greater employees and outside entities also. To properly manage the business first of all you would need to make a perfect plan that how to conduct the whole operations. You will need to hire managing professionals for separate departments because the cycle of operations would have become quite big to control by one or two managers. There will be purchasing department, selling department, transportation department, accounts department and you will be general manager to keep check on all managers of different departments.

As a wholesale distributor you will need to hire many employees who would perform various duties assigned to them. You will also need to purchase transportation vehicles and other lifting equipments and their properly trained drivers. Plus you will also need some experienced person to deal with problems related vehicle and other road violations. When your team is full then you are ready to start your operations. Still it will be quite difficult to manage the whole business but once you and your employees will get acquainted with business and each other then the difficulties will be lessened and you will be enjoying life and will be reaping from your harvest. Achieving success is easy but to attain our success is difficult when you are in wholesale distribution business.