Value vs Price

When the bid x ask spread in futures has increased so that you know when to wait for a better entry, learn how to recognize. That is the sign of a trader who knows the difference between price and value.

The value of that instrument can be something different if you know where to look. Do you know what theoretic value is for an option?

Is it price or value that causes you to hesitate to take advantage of excellent trading information when it is free? Look at the price versus the value when you find yourself hesitating.

Value = the importance, worth or usefulness of something.

We see the price on the chart or quote board when we trade in the various financial markets. The price is what the market maker is selling or buying the specific financial product you are researching.

Rob Roy, founder of WealthBuildersHQ has a free online class called Building an Options Trader and you have the opportunity to watch it live or recorded. Learn how to get the most out of your options trading.

The value of that instrument can be something different if you know where to look. Do you know what theoretic value is for an option?

Many frequently use price and value to mean the same thing. As wealth builders, let’s start with a definition.

Price = the amount of money required in payment for something.

Is it price or value that causes you to hesitate to take advantage of excellent trading information when it is free? Look at the price versus the value when you find yourself hesitating.

Become a knowledgeable wealth builder at WealthBuildersHQ.

Wealth building is a major focus for Robert Roy and those who work for WealthBuildersHQ Traditional methodology of wealth building has left many a bit richer and it may not always be you.

These are abbreviated definitions, but they start to show us something potentially useful in our trading.