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Friday, February 13, 2009

Iron Condor A Best Stock Option Trading Strategy.

By Walter Fox

The rapid growth of internet connectivity has created a sharp rise in the entry-level trader ranks. These new traders are interested in the high profit potential in the currency trade market, and come from all walks of life and education levels. These people have joined the market and use the potential for high returns as incentive to master the complex and wide-reaching Forex market.

With the influx of novice traders from all over the world, there has been a definite learning curve. With this in mind, the need for sound stock option trading strategy has never been more apparent. In addition to the main Forex market having an increasing turnover daily, many new brokering agencies are being born to help these amateur traders.

These brokers, seeing the need, began to develop different trading tools and learning kits to educate the new, as well as to help established traders hone their knowledge. Broker tricks have now begun to dominate the forex market. These brokering agencies formulate their techniques and sell them to traders desperate for guidance in the complicated industry.

Since growth of currency market was so fast, it touched and crossed the trillion dollar turnover per day mark in no time and as per estimation the present turnover is more than 2 trillion US$ with in excess of 100 million traders from all over the world participating in the trade with mixed luck. With this development, there was a necessity for stock option trading strategy.

This need has also led to a software robot known as Commercial Forex Expert Advisor. The software specializes in being capable of making a successful trade on behalf of the trader, and has been market tested and proven. The success of this software has made it a prominent tool in the trading circle and is considered one of the best tools available.

Online education has made its mark on the currency exchange market as people realize the potential in online option trading and lack the ability to travel to a school. Email courses and online webinars have made the market more accessible to those with limited time or who prefer to learn remotely. This and other means are being used to keep strategies varied and attract new players to the industry.

Iron condor, an advanced forex option trading strategy, has enjoyed increasing popularity among more seasoned high risk traders. The strategy consists of two vertical spreads, the Bull put and the Bear call. In this strategy, both spreads have the same expiration, number of put spreads, and number of call spreads. The trading strategyas resultant profit-loss graph resembles the shape of its namesake, the condor.

There are number of advantages if you opt for Iron condor trading strategy. The main advantage of this strategy is its potential for more profit generation. It gives more flexibility to the trader in the middle of the trade if he wishes to change his option. With the help of different strategies traders can make sure that their invested money can earn him more money.

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