Benefits for trading SPX options instead of SPY options
Exciting news! Discover SPX index options trading and save money by allocating the S&P 500 index! Did you know that you can invest in indices through index options? Tiger Trade now supports options trading for several popular indices, including SPX, DJX, and NDX. This means that you can lower your costs and reduce trading fees when investing in indices. But what exactly are index options, and why is trading options on indices more cost-effective? Index options are options contracts based on stock market indices. Let's focus on SPX index options, which have good liquidity. The S&P 500 index is considered an excellent benchmark for measuring stock market performance. However, the index cannot be directly traded, and market participants can only profit from it by trading ETFs that tra
Stop-Loss Orders: a better way to limit losses and reduce risk
Limiting risks when investing doesn't have to be convoluted. Stop-loss orders are a great way to help investors ensure that they are setting a reasonable price for their stock to be sold and limit their losses. Essentially, a stop-loss order is an order that gets prompted when the price of the stock falls below or rises above a specified price and will be sold at the next available price. Image: Tiger Trade desktop app. Stop-loss orders can be a useful tool if investors are unable to monitor their trades on a daily basis. For investors, something to consider is what parameters you will place on your stop losses once you've bought the stock. Personal risk tolerance plays an important part when it comes to placing a stop-loss order, so you should always think about what that tolerance limit