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OptionsXpress – Brokerage Review

Introduction

Unlike many of the online brokerages competing for investor accounts, optionsXpress is a relative newcomer to the market. A little more than a decade old, the company built itself around options trading before adding futures capabilities through an acquisition. OptionsXpress was itself then acquire by Charles Schwab in 2011 and operates as a subsidiary. SEE: Charles Schwab Broker Summary

Account Types and Minimum Deposits

For a company that would appear to be built to focus on options traders, optionsXpress actually offers a relatively wide array of account types. Customers can choose between cash and margin accounts, and accounts are available in a wide variety of categories, including IRAs, trusts and business accounts.

There are no minimums for most accounts, though margin accounts do have a $2,000 minimum.

Services Offered

Perhaps not surprisingly given the name, optionsXpress offers an array of services to options traders. What may surprise some, though, is the extent to which other types of trading are available. To start with, optionsXpress offers full options trading, including facilitating more elaborate/complex options strategies, and penny options.

OptionsXpress also offers a very wide range of futures trading; while many brokerages now offer some futures trading, it is often limited to a select number of exchanges.
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Figure 1: Some benefits of trading futures with optionsXpress.

This brokerage also offers online stock trading, bond trading, ETFs and mutual funds. Investors can also access other services provided through Charles Schwab, including banking services. (For related reading, see TD Ameritrade Thinkorswim.)

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Source: investopedia.com

Asset Valuation Allocation Models

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Speculative trading stems from disagreements among traders. Besides the approaches based  on the existence of private information (and noise traders) or the di erences of opinions, Harrison  and Kreps(1978) and Morris(1996) relied on the presence of diverse beliefs to explain speculative phenomena. This paper proposes a new model of speculative trading by introducing rational beliefs of Kurz(1994) and Kurz and Wu(1996). Agents hold diverse beliefs which are  rational” in the sense of being compatible with observed data. In a non-stationary environment the agents may learn only about the stationary measure of observed data. Agents’ beliefs can be non-stationary and diverse even when their stationary measures become the same as that of the data with complete learning.In a Markovian framework of dividends and beliefs, we obtainanalytical results on how the speculative premium depends on the extent of heterogeneity  of beliefs. In addition, we demonstrate the possible emergence of endogenous uncertainty (as de ned by Kurz and Wu(1996)) and the persistent presence of diverse beliefs and positive speculative premiums.

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Aust Vs Int’l Equity Portfolio Journal

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Often described as home bias, an enduring feature of strategic asset allocations in Australia and abroad is a relatively high weight to domestic assets. This paper analyses whether a home bias to Australian equities can be justified, and concludes that, on the basis of evidence from historic outcomes, investors with very long investment horizons should have held most if not all of those equities in global portfolio decision would have disappointed over many short and even medium-term periods. On balance, on the evidence presented in this paper, it would appear prudent to lean towards inversting at least 50% and perhaps up to 60%-70% of a portfolio’s total equity exposure in international equities.

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Automated Forex EA

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By Winsor A.G.A. Hoang
Forex Trading has been marketed to the average person as his voucher to financial independence and unlimited wealth. With the introduction of so-called veteran trading chat rooms, real time market data, instantaneous trade execution, and trading on the news, there is an enormous amount of information feeding to your home PC or laptop by the internet. The Forex trading claims to provide full time self employment opportunities with a gargantuan payday everyday. This is a dream come true for want-to-be traders.

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Avoiding Mistakes In Forex Trading

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By Abe Cofnas
Adifficult challenge facing a trader, and particularly those trading e-forex,is inding  perspective. Achieving that in markets with regular hours is hard enough, but with forex,   where prices are moving 24 hours a day, seven days a week, it is exceptionally laborious..

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Back To Basics – Historical Option Pricing Revisited

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We reconsider the problem of option pricing using historical probability distributions. We first discuss how the risk-minimisation scheme proposed recently is an adequate starting point under the realistic assumption that price increments are uncorrelated (but not necessarily independent) and of arbitrary probability density. We discuss in particular how, in the Gaussian limit, the Black-Scholes results are recovered, including the fact that the average return of the underlying stock disappears from the price (and the hedging strategy). We compare this theory to real option prices and find these reflect in a surprisingly accurate way the subtle statistical features of the underlying asset fluctuations.eptionally laborious..

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Backtest setup

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MrPip, the data I use is freely available from Alpari from this location – http://www.alpari-idc.com/en/dc/databank.php. Download all the M1 data (about 15 months available) for the currency pair you’re interested in and uncompress it to a known location. Go to ToolsHistory Center and locate the symbol you’re working with. Delete all data (M1 to MN) for each period by first double-clicking on the period, highlighting ALL the data in the window and hitting Delete. The reason for this is that the Period Converter Script doesn’t seem to work properly if the fields already contain data. Also work offline when doing this because if any EAs or charts are active these will be updated in the background. Next, still in the History Center, ‘Import’ all the M1….

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Money Management Strategies for Futures Traders

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 Distills complex theories for the benefit of the average trader with little or no background in finance or mathematics by offering a wide range of valuable, practical strategies for limiting risk, avoiding catastrophic losses and managing the futures portfolio to maximize profits. Numerous topics are explored including: why most traders lose at the futures game most of the time; why most mechanical trading systems are apt to fail; the probabilistic approach to trading; how to make stop-loss orders work for, rather than against you; the pros and cons of options versus futures trading; and how to limit risk through diversification.

 

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Bangia, Diebold, Schuermann And Stroughair-Modeling Liquidity Risk, With Implications For Traditi

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 Market risk management under normal conditions traditionally has focussed on the distribution of portfolio value  changes resulting from moves in the mid-price. Hence the market risk is really in a “pure” form: risk in an idealized market with no “friction” in obtaining the fair price. However, many markets possess an additional liquidity  component that arises from a trader not realizing the mid-price when liquidating her position, but rather the mid-price minus the bid-ask spread. We argue that liquidity risk associated with the uncertainty of the spread,  particularly for thinly traded or emerging market securities under adverse market conditions, is an important part of  overall risk and is therefore an important component to model.

 

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