Hedging for Small Investors

Take Trading Lessons Home

I believe other lessons also can be learned and questions raised about how you approach your current trading from looking at this type of site.

Are you speculating or hedging?

Are there other products that would be more appropriate in application toward achieving your goals?

Do you have any informational or competitive advantage in the market?

Does the market provide sufficient liquidity for executing transactions?

The ability to trade contracts on the actual event, such as the result of the next Federal Open Market Committee meeting, can make hedgelets a more efficient tool. The product can do this because you are speculating directly on the event or instrument rather than its possible causative impact on the broader market. The minimal contract price of just $10, and access to nearly anyone with $500, a credit card and a relatively clean record, opens trading on these markets to a very wide audience.