T2W Bot

Staff member
1,454 55
Options are conditional derivative contracts that allow buyers of the contracts (option holders) to buy or sell a security at a chosen price. Option buyers are charged an amount called a “premium” by the sellers for such a right. Should market prices be unfavorable for option holders, they will let the option expire worthless, thus ensuring the losses are not higher than the premium. In contrast, option sellers (option writers) assume greater risk than the option buyers, which is why they demand this premium.
Options are divided into “call” and “put” options. With a call option, the buyer of the contract purchases the right to buy the underlying asset in the future at a predetermined price, called exercise price or strike price. With a put option, the buyer acquires the right to sell the underlying asset in the future at the predetermined price.
Why Trade Options Rather Than a Direct Asset?
There are some advantages to trading options. The Chicago Board of Options Exchange (CBOE)...
Continue reading...
 
Last edited by a moderator:

NVP

Legendary member
36,782 1,881
sounds interesting ....never really got into options apart from the 1980s .......will give it a read when i get time
 
  • Like
Reactions: Go markets

Similar threads


AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock