DEFINITION of 'Zero Cost Strategy'
A trading or business decision that does not entail any expense upon execution. Zerocost trading strategies can be used with a variety of investment types, including equities, commodities and options. A zerocost business strategy might be to improve sales prospects for a home by decluttering all the rooms, packing excess belongings into boxes and moving the boxes to the garage. Zero cost strategies often involve the simultaneous purchase and sale of an asset such as that both costs cancel each other out.
BREAKING DOWN 'Zero Cost Strategy'
One example of a zerocost trading strategy is the zerocost cylinder. In this options trading strategy, the investor works with two outofthe money options, either buying a call and selling a put or buying a put and selling a call. The strike price is chosen so that the premiums from the purchase and sale effectively cancel each other out. Zerocost strategies help reduce risk by eliminating upfront costs.

Range Forward Contract
A zerocost currency forward contract that uses a range of exchange ... 
Bull Put Spread
A type of options strategy that is used when the investor expects ... 
Bear Spread
1. An option strategy seeking maximum profit when the price of ... 
Horizontal Spread
An options strategy involving the simultaneous purchase and sale ... 
Vertical Spread
An options trading strategy with which a trader makes a simultaneous ... 
Bear Call Spread
A type of options strategy used when a decline in the price of ...

Options & Futures
Trading Options With The ZeroCost Cylinder
The zerocost cylinder allows traders to effectively trade the market while protecting their downside. 
Professionals
Hedging and Options Strategies
Hedging and Options Strategies 
Professionals
Investment Strategies
Investment Strategies 
Trading Strategies
A Guide Of Option Trading Strategies For Beginners
Options offer alternative strategies for investors to profit from trading underlying securities, provided the beginner understands the pros and cons. 
Forex Education
10 Options Strategies To Know
If you want to trade options but are short on strategies, we can help. 
Options & Futures
Understanding Bull Spread Option Strategies
Bull spread option strategies, such as a bull call spread strategy, are hedging strategies for traders to take a bullish view while reducing risk. 
Options & Futures
Three Ways to Profit Using Put Options
A brief overview of how to profit from using put options in your portfolio. 
Options & Futures
The Basics of Options Profitability
The adage "know thyself"and thy risk tolerance, thy underlying, and thy marketsapplies to options trading if you want it to do it profitably. 
Mutual Funds & ETFs
Understanding The Mutual Fund Style Box
Evaluate your investments with this simple tool. 
Options & Futures
Collecting Option Premium In The Grain Market
Believe it or not, there are some great incomegenerating strategies that are lower in risk.

When does one sell a put option, and when does one sell a call option?
The incorporation of options into all types of investment strategies has quickly grown in popularity among individual investors. ... Read Answer >> 
Do options make more sense during bull or bear markets?
Understand how options may be used in both bullish and bearish markets, and learn the basics of options pricing and certain ... Read Answer >> 
What options strategies are best for investing in the industrial sector?
Learn a couple of popular options trading strategies that can be used by investors seeking to enhance their profits from ... Read Answer >> 
What option strategies can I use to earn additional income when investing in the ...
Learn about a couple of good options strategies that traders can use to enhance investing profitability when investing in ... Read Answer >> 
Can I make money using put options when prices are going up?
It seems counterintuitive that you would be able to profit from an increase in the price of an underlying asset by using ... Read Answer >> 
What techniques are most useful for hedging exposure to the telecommunications sector?
Learn about option strategies used to hedge a long stock position in the telecommunications sector, including bear put spreads ... Read Answer >>