Learning

These posts focus on explaining stock terminology and discussing related topics. There will be a range posted here from beginner’s guides on derivatives to breakdowns of trading strategies. We mainly focus on the derivatives market and speculative markets such as SPACs.

  • Average Directional Index (ADX)
    The average directional index (ADX) is a technical indicator used to measure the strength of a trend. It is a non-directional indicator, it only shows the strength of the trend and not which direction the trend is in. So, on charts it is often accompanied by the negative directional indicator (-DI) and the positive directional … Continue reading Average Directional Index (ADX) →
  • Beginner’s Guide to Futures
    A futures contract is a legal agreement to buy or sell a particular commodity, asset or security at a predetermined price at a specified time in the future. The buyer of the futures contract is obligated to buy the underlying asset when the contract expires. And the seller is obligated to provide and deliver the … Continue reading Beginner’s Guide to Futures →
  • Beginner’s Guide to Options
    This is the bare bones basics of how option contracts work. There are two types of option contracts, a call and a put. A call is a contract that allows the buyer the right to buy an asset at a given price – called a strike price – at or before a certain date with … Continue reading Beginner’s Guide to Options →
  • Beginner’s Guide to SPACs
    Special purpose acquisition companies (SPACs) are companies formed for the sole purpose of raising capital in order to acquire an existing company. They raise capital through an initial public offering (IPO) and are often referred to as “blank check companies” as they IPO without any business operations. SPACs are usually formed by a group of … Continue reading Beginner’s Guide to SPACs →
  • Beginner’s Guide to Warrants
    A warrant gives you the right but not the obligation to purchase a share at a predetermined price. Very similar to how options work. Say you bought a warrant for $2 that lets you buy a stock of company X at a strike price of $11.50, if the price of company X reaches $20. Exercising … Continue reading Beginner’s Guide to Warrants →
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