Learn about options trading and investing

Options, also known as digital options, all-or-nothing options or fixed return options (FROs) are the fastest and simplest way to trade the worldwide markets today.

A option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of options are the cash-or-nothing option and the asset-or-nothing option.

Options became available as a method of investing in 2008 when the Securities and Exchange Commission (SEC) legalized the listing of options as tradable contracts on international financial markets. In 2012, they were officially deemed financial instruments by CySEC.

Options allow traders to predict the future direction of an asset such as stocks, commodities, indices, cryptocurrencies or currency pairs in the forex market.

In options trading, this means that you are making a prediction of whether the value of an asset will rise or fall over 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. For example, if the price of gold is currently 1500, will it rise or fall by 5:00 PM today? As far as a trader is concerned, all that matters is if his/her prediction was correct or incorrect. If the investor prediction is correct, he/she will win a predetermined percentage of the amount he/she chose to invest. But if the investor prediction is wrong, he/she will lose the investment amount.

Options allow the 21st century investor to focus solely on what is important, the direction of the asset, without other complicating factors, and to enjoy exceptionally high returns for each correct trade. Options trading give you the opportunity to grow your investment like.

Options trading and investing

See also:
Options brokers rating
Forex brokers rating
What is options trading
Options trading assets
Options trading platforms
60 seconds options
Benefits of options trading
Types of options