OUTRIGHT TRADING

Outright trading is taking stand-alone positions in any one market which is not generally correlated to another product. Outrights carry greater risk because positions are wholly based on price movement, this means outrights tend to be prone to greater volatility thus the amount of margin (money to cover the position) are higher.

Taking an outright position is to simply buy (go long) or sell (go short). Like any trade you can go to market i.e. ‘hit’ the bid (buy current market price) or lift the offer (sell the current market price). Alternatively, orders (either buy or sell) can be placed in the order book at a price traders wish to pay and as such traders will then need to wait until that price is reached for execution.