Creating Trades & Positions
Trades, or the buying and selling of financial instruments, are the life blood of investing in financial options.
Trading financial options is not easy, we need all the help we can get to give us that competitive edge. Trades need to be recorded, positions need to be analysed and decisions need to be made as to how those positions are to be managed.
ONE allows you to record trades - trades that you have either made out there in the real world with a financial brokerage or trades that you are just trying out on paper. These trades can be made live today or we can "back test", creating them retrospectively and then by simulating the passage of time, see what happens and gives us the opportunity to test the effectiveness of our subsequent adjustments in various market conditions.
Positions are essentially nothing more than one or more Trades made over a period of time that have been grouped together for our convenience - and in the vast majority of cases that convenience really comes down to hedging or risk management.
•When you create a new Trade in ONE you are in effect creating a new Position. ONE allows you to create as many Trading Positions as you like, but you are required to group them into Accounts.
•When you select an existing Trading Position and amend it by adding further trades you are adjusting that Position. You can adjust a Trading Position as many times as you like.
•When you amend an existing Trading Position and reduce the number of outstanding contracts to zero then you are closing that Position. However, closing a Position is not necessarily the end - ONE does provide the means to re-open a previously closed Position by selecting the corresponding TradeId in the Trade Documentation window when you Commit a Trade.
•ONE does not automatically expire options. Therefore every opening trade must have a corresponding closing trade in the same Position (Trade Id).
Adjusting or Re-Opening a Trade