Options Trading for Beginners: The Ultimate Guide to Start Trading Options.How to build a Stream of Income from Home with Practical Trading Strategies. - Hardcover

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Do you want to know what are options? Do you want to learn using simplified teaching methods in an easy step-by-step format? If you want to make profit in Options, t hen keep reading....


Options trading is one of the best choices when one decides to invest in securities.
An option is a contract which allows the investors to sell or buy an instrument like ETF, security or even index at a price which is decided from earlier over a certain span of time. The buying and selling options can be done in the options market where the trading of the contracts is done based on the securities. When one buys an option that allows buying shares at a later time it is known as a "call option." Buying an option which allows selling shares at a later time is known as a "put option."
Options are quite different from the stocks as they do not signify any kind of ownership of the company. The futures also use contracts in the same way as the options, but the options do not carry high risks. This is because one can withdraw from an options contract at any point of time. The price of the option or the premium paid for it is nothing but the percentage of the security or the underlying security.
When an investor decides to sell or buy the options, he has the right to exercise that option any time till its expiry. Just buying or selling the option does not mean that one has to actually exercise it at the buying or the selling point. This is the reason why options are considered as the derivative securities as their price is derived from something else. Thus, options are less risky than stocks.

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