Chart patterns are then observed to determine a trading strategy. A futures trader who has his futures position for an extended period of time. The price of an option, not including related brokerage commission fees. The buyer of an option pays the premium, whereas the seller of an option receives the premium. The risk associated with not being able to predict price accurately.
Price risk is greater than basis risk.
An option which gives the buyer the right, but not the obligation, to sell the underlying futures contract at the strike price on or before the expiration date. The difference between the highest and lowest price recorded during some time period. The time period may be a day, week, month, life of contract, or any given period. Relative Strength Index. A technical tool which uses price changes, rather than price levels, to indicate overbought or oversold market conditions.