What does cornering a market mean?

In the world of trading, there were several occasions of so-called cornering a market. This term means, in general, a situation where someone with a certain market or financial power is able to create an artificial shortage of whatever. In this article, we will take a closer look on the term cornering a market and also check some examples. So let’s start! Historical background The term cornering a market got publicly known back in the times in the late 19th century when the futures traders in Chicago were exploiting an advantage by creating an artificial shortage which was called “corners”. That’s where the term cornering a market comes from. How did they do this? Well, they used the anonymity of futures and bought as much of them as there was sufficient to be able to control the market. Usually, it were pretty often the wheat traders who made the term “cornering” infamous! As they bought, the sellers of the wheat futures were obligated to deliver. That’s how the idea of futures works. But there was, of course, a lot of speculation, also among the futures sellers. A certain amount of them sold more futures than they were able to deliver. Doing this, they were just speculating that the price of the futures would fall, and with that, they would buy their too many sold futures back for a lower price and thus, made an extra profit. And here was the catch: As one wheat trader, or sometimes a couple of…

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What are LEAP Options?

The term for LEAP options (also called LEAPS) is Long-Term Equity Anticipation Securities. A boring term, I know. But it’s simple and not complicated at all: LEAPS are just normal options (securities) with a very long expiration time. Whereupon “very long” means an expiration time longer than one year. But anything else is practically the same. In this article, we will take a closer look on the whole topic about this type of options and check how to make money in stocks (or even futures) by trading LEAPS.

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What is the Options Price Reporting Authority?

Accurate real-time data is essential to the proper functioning of the options market, but it would be tremendously challenging for individual associations to collect and process options market data. Exchanges involved in options trading produce huge amounts of data, far beyond of data than other asset classes generate. In other words: options data traffic produces at least 75% of all market data! This growth in data has caused a seemingly interminable increasing demand in hardware and software for vendors and customers as well. This all by increasing of the operating costs with just a little or even no benefit for the market participants. Hence, a solution has to be developed to address the issue. The solution which was developed has got the name Options Price Reporting Authority (OPRA).

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What is the Pi network and is it safe?

The Pi Network (PI) had caught the attention of crypto enthusiasts before the coin was even available for trading. Some users see it as a way to get involved in a cryptocurrency from scratch and profit in the future, just as some of the early Bitcoin (BTC) entrants have made profits from mining and holding the coin. Others, on the other hand, have compared Pi-Crypto to a Multi Level Marketing (MLM) scam that has no value. But what is the Pi network and how does it work? Have you heard about this new cryptocurrency and are wondering whether the PI coin is worth as a potential investment? This article provides an overview of what the Pi Network (PI) aims to achieve and what the Pi coin price prediction looks like. Also, we will delve into the question “Is Pi network a scam”.

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What is a strangle in options trading?

A strangle is one of the very common strategies in options, and every beginner in options trading will learn to know this one (amongst some of the other basic strategies). In this article we are going to answer the question “What is a strangle in options”. Also, we will check the differences between a long and a short strangle, and check which of both strategies is better. So, let’s start!

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