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The Price of Holding a Position
Posted in Traders' Delusions, Submitted by Trading Critic on Fri, 2006-09-22 00:10.
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When you trade with derivatives, especially utilising Contracts For Difference's (CFD's) your break even price is dynamic. If you trade with options and similarly with warrants, there is time decay to consider. With CFD's as well as forex contracts, the price of holding a position is much simpler than dealing with delta's that define decay with derivative instruments such as options.