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What is option trading?
Trading in options entails purchasing and selling option contracts. These agreements allow the holder to choose whether to purchase or sell a group of underlying securities at a fixed price by a given date. To buy or sell an option, investors can, but are not required to, possess the underlying securities. The holder (buyer) and…
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Option trading vs Stock trading
Stock trading versus trading in options You must be wondering why options trading even exists if it is just another form of trade. Here are a few things that set it apart from trading stocks. – Unlike stocks, the options contract has an expiration date. Depending on the rules and the type of Options you…