The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online
#430 - Financing 101: Understanding "Positive Spreads"
- Author: Vários
- Narrator: Vários
- Publisher: Podcast
- Duration: 0:06:36
- More information
Informações:
Synopsis
Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we're going to be talking a little bit about financing 101 and hopefully, helping you understand how to leverage positive spreads and how to look for positive spreads in any type of investing that you do. Now, this again, like I said, is more of a financing 101 piece or topic, but in all reality, it's probably not something that’s covered in most financial books or even in financial courses. But if you look around every single business, every single market, including the options market, what you'll notice is that any business that's going to be successful or any investment that's going to be successful has to have some sort of positive spread. And I’m not talking about option spreads although we love option spreads here at Option Alpha. I’m talking about positive spreads between basically, cost and what you can borrow or the cost of financing or the cost of the position and then what you can charge or what you c