Link to this headingTrading

Link to this headingVocabulary

Arbitrage: purchasing an asset from one market and selling it to another market
Derivatives: The broader grouping of Futures and Options
Futures: Contract between buyer and seller to trade a stock at a specific price in the future
Call Option: Gives the holder the right to buy crypto at a predetermined price. Good if you think the price will increase
Put: Gives the holder the right to sell crypto at a predetermined price. Good if you think the price will decrease
Perpetual Futures: A futures contract without an expiration date
Limit Order: Order to buy or sell a stock at or below a specific price
Margin: Margin is when investors borrow money from a broker to purchase a stock
Spot Trading: Buying a specific asset at the immediate market price
Covered Call: If you own the stock and create a call option on that stock that others can buy. You make money when you receive the call premium from the person who bought the call option and the stock does not gain enough in price to make the call option worthwhile. You gain dividends on the stock that you own, gains in small stock rises, and call option premiums