What are Options?

Options let traders predict the future direction of an asset such as stock, commodity, index or currency pairs.
What are Options? In Option the investors simply predict whether the value of an asset will rise or fall within a set period of time. They are one of the simplest trading instruments and investors will have the outcomes of their prediction when the expiry time ends. There are two possible outcomes and the price of the asset does not matter. So what matters is if your prediction was correct or not. If the investor prediction is correct, he/she will win a predetermined percentage of the amount he/she chose to invest. On the contrary, if the investor prediction is wrong, he/she will lose the investment amount. This is the opportunity that a Option gives you to grow your investment like the wind.

How to trade it?

Options trader profit
Options are not complicated trading instruments. They are very simple and easy to understand. There is no matter if you are experienced or not, you can simply understand the trading strategies and process. You are able to trade the assets such as stock, commodity, index or currency pairs in a trading platform with a variety of trading tools and properties.
In Options, you are able to buy an asset in both directions of trade either by buying a “call” option or “put” option which are the basics. When the price of the underlying asset is expected to rise, a trader buys call option and If the price is expected to fall below the strike price, a trader buys put option.
A key to a successful option trading is that to make sure the asset in which you are investing your funds will move in the same direction of your prediction while paying attention to the expiry time and date of the underlying asset.
Such as Forex, Options are traded online. What enables you to have a benefit of option trading is an account with a trustable company.

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What are Options? What are Options? Reviewed by Ivan Ivanov on February 05, 2018 Rating: 5

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