What are Options - How to Trade, Complete Guide

Options allow traders to make a profit by predicting the future direction of assets such as stocks, commodities, indices, cryptocurrencies or currency pairs. The income in each winning transaction is up to 92%, which is the most effective way to trade in the financial markets. Learn more about options, fundamentals of trading and transaction forecasting to increase your investment. Read the complete guide.

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 on options

How to trade on options

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, cryptocurrency 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.

See Also:
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Types of Options