A type of financial contract whose value is based on an underlying asset, group of assets, or benchmark. A derivative is an agreement made between two or more parties who can trade over-the-counter or on an exchange (OTC). These contracts have their own risks and can be used to trade a wide range of assets. Derivative prices are based on changes in the underlying asset. These financial instruments can be traded to reduce risk and are frequently used to get access to specific markets. Derivatives can be used to either accept risk with the intention of receiving a similar reward or to mitigate risk (hedging) (speculation). The risk-averse can transfer risk (and the associated profits) to the risk-takers using derivatives.
As we all know, 2022 has been a painful year, and it continues to be so. What works during a bearish market are a few strategies: shorts, inverse ETFs, holding cash positions and day trading. Today we take a look at ATXI and see how we day traded it. Watch this video to get the technicals. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is