Speculation On Falling Prices: A La Baisse

Trading on the stock exchange investors basically two different trading strategies on the stock exchange take: the a la bear market and a bull of la market. The Exchange Portal boersennews.de informs the strategy dedicated to the falling prices. Who speculated on the stock market on falling prices that followed the a la bear market strategy. Markets, with over a long period of falling prices are in the industry as bear markets to german: bear markets referred to. The a la bear market strategy offers investors different ways, to become active in the falling market. So, the short sale can be made in addition to the purchase of a put option and the sale of a call option. Here, goods, currencies or other securities are sold, which the seller at the time of the sale, if necessary, does not have. “” Blankoverkauf “or short sale” are other terms for this procedure.

This type of sale is possible as both spot and futures. According to the economic lexicon by boersennews.de the seller delivers when the Cash transaction within the normal market period of two to three working days the requested value. This is possible, for example through a securities lending or a repurchase securities. Also the short seller must buy later back the selling value. In the derivatives business, however, must value the traded later at a fixed time, delivered. The seller is located in a short position, where he can choose whether he buys the traded value and finally returns to the buyer at the specified time, or whether he smooth this period before is the short sale. More information: ../a-la-baisse/5 Lisa Neumann University first media GmbH