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Is there a safe way of investing in the futures market . A broker has told me that using put options as ?

insurance is safe . How would i do that or how would i judge that to be a safe if i did it that way.

6 Answers

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  • 1 decade ago
    Favorite Answer

    look up... options collar

  • 1 decade ago

    Have you ever bought or sold shares on the stock market? If you have no experience there then you should not even be considering 'put' and 'call' options. Your broker may know all the 'ins' and 'outs' of these contracts, and should not really be suggesting these to you, unless you are willing to let him make all the decisions on your behalf. I would strongly advise against that.

    Investing money in the stock market is serious business. If you wish to invest money there then you should be willing to spend the time and effort to understand it. Never just follow the suggestions of anybody else. You should take advice given and then only follow it if after your own thorough investigation, those suggestions fit into your overall plan. Have you made a plan yet? What is it you are wanting from your investments in the stock market? A quick profit? Short, medium, or long term holdings, an income stream, capital gain?

    Never, never invest money in the stock market that you cannot afford to lose.

  • 5 years ago

    definite, you're able to do all of that. that's volatile, nonetheless. regardless of if, it is not stated as a sell determination. that's stated as a "cut back sell order," that's an order to sell a definite inventory provided that the cost is comparable to or extra suitable than a given cut back. additionally, you might have a "end order," that's an order to sell a definite inventory if its cost falls to a definite point or under. it fairly is purely for secure practices motives. i think of you're perplexing an "order" with an "determination." An "determination" is the offered good to purchase or sell a inventory, meaning you purchase the the main suitable option. A "call determination" enables you to purchase a inventory at a definite cost till a particular day (collectively as a "positioned determination" is the the main suitable option to sell...).

  • IceT
    Lv 7
    1 decade ago

    The futures and commodities markets are the riskiest.

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  • 1 decade ago

    if you talk about safe ...here you go ,the best and only

  • Anonymous
    1 decade ago

    keep it liquid until the crisis is over

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