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Monday, March 2, 2009

Iron Condor A Best Stock Option Trading Strategy.

By Walter Fox

Due to the rapid growth of internet connectivity, people who are not having any idea of currency trade till then started showing their interest in this profitable market. People from different back grounds jumped in to the fray and started testing their luck. The vastness and depth of the forex market with a high profit potential made these players to stay in the market irrespective of their performance.

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.

The rapid growth of the currency market saw it touch and exceed the trillion dollar per day turnover. The estimated present turnover is more than 2 trillion US$. All this is driven by an excess of over 100 million multinational traders, with all ranges of success individually. In this climate, there is a definite need for stock option trading strategy.

The demand for new trading tools resulted in a software robot which is called as
Commercial forex expert advisor. The specialty of this soft ware is, it is capable of make successful trade on behalf of the trader and it is proved in the market in most of the trades. This is a best stock option trading strategy and found a prominent place in the trading circle.

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 is an advanced forex option trading strategy which has become very popular among high risk traders. This strategy is a combination of two vertical spreads named Bull put and Bear call. The expiration of these two spreads is same and number of put spread and call spreads are equal. This trading strategy is named after a big bird called condor since the resultant profit- loss graph resembles the shape of this bird.

There are a number of advantages which resulted in the Iron Condor strategyas popularity. The main benefit is the potential for a higher level of profit generation. The trader has more flexibility mid-trade to change his option. This is but one of the many strategies available to traders, and the best of them employ many different types to return the highest profit on their investments.

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