options trading
options trading
are a contracts that allow an investor to buy or sell an underlying securities at a certain price over a certain time, buying and selling options is done on the option market, it consider a type of derivative securities which their price derive from the value of assets, it is very similar to stock trading, but it more complicated subject than stock trading, also it is less risky than stocks, trading options have the ability to create options spreads, also most of options trading involve the use of spreads, have a great popularity with professional traders and casual traders, investing with options trading is so profitable but its loss is so costly, options contrasts can be based on variety of underlying securities, so the traders can use options to scalp on the price movement of different securities such as forging currencies, commodities, indices or other, Options trading in particular have proved to be so popular among traders, it's becoming so very common, moreover, it involves buying and selling options contracts on public exchanges.
online trading platforms
in options trading, traders have many choices in the way trades that they can execute to make money and get a great opportunities for profits, options traders can make profits through buying and selling options contracts which will go down on value, options traders are self directed investors, they only take all their trading decisions and transactions, traders can use many ways to scalp and trade on variety kind of underlying securities such as equities, indexes, funds or other, more over they speak their own lingo, use the Greek alphabet to show how option prices are expected to change in the market, they also must define their financial goals and investing goals before they start trading.options trading include call options and put options, call options is a contract that give trader the right to buy a certain securities at certain price over a certain time, call options allow trader to buy a certain securities till the expiration date of contracts, when trader track the right way in buying, his securities price will go up and make a profit of his contract, the premium of call options is a strike price which trader agree with seller to buy, moreover it doesn’t change till expiration date of contract, when the stick price is low, call options will be more valuable, put options is a contract that gives the trader the right to sell a certain securities at a certain price over certain time, put options allow trader to sell securities till expiration date of contract, the premium of put options is strike price which trader agree with buyer to sell , moreover it doesn’t change till expiration date of contract, when the strike price is high, put options will be more valuable, regarding to the expiration date of call options and put options, options is going to be out of money, because a lot time before expiration date of contract , the premium will be more valuable, less time before expiration date of contract, the premium will be less valuable.
volatility in options trading show the price swings are for a given securities, so when the volatility with securities is high, the risk is too high, but when volatility with securities is low, the risk is too low, shorting options is selling options with limited profit and unlimited risk.