Commercial Hedging with Options

Commercial hedging with options is fairly well understood and implemented practice. However, members of the financial industry tend to wrap commercial hedging with options in terminology that the individual investor may find hard to understand.

It makes commercial hedging with options sound scary, maybe even apocalyptic. And, while it is true that options do have risk, they're actually a form of risk management when they're used in commercial hedging with options.

For example, if you worry that a stock you own is going to fall, you might want to take an option for a small amount of money that will more than cover any losses, should the stock drop. Commercial hedging is almost like an insurance policy.

Commercial hedging with options can be also produce very high returns. Because an option usually requires just a small portion of the total price of the investment vehicle, any gains--or even losses--to the fundamental instrument creates high returns. Returns of over 100 percent are not rare.

Online Investing AI will create systems that use advance technology to trade options on a variety of underlying financial instruments. This will be one way we can manage risk and increase returns for our clients.

By using advanced technology, that is similar or better than major financial companies use, we believe we can produce high returns for the individual investor, while trimming risk, through commercial hedging with options.

For more information, check www.OnlineInvestingAI.com and learn how to Get Rich Smart.