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Showing posts from December, 2020

Brief Introduction to Options Trading

  Brief Introduction to Options Trading  Options Trading is a tricky concept. Many people are often misguided by saying that trading options is as same as trading stocks, which is not the case at all. Stocks are completely different from Options and are even traded in a completely different market. Therefore, to understand Options Trading better, you must understand the basics first.  What is Options Trading? Best Options To Trad e , in its true definition, is a contract. This contract allows an investor/buyer to trade an underlying instrument, such as security, ETF, Stocks, at a pre-determined price for a specific time period.  Now, there are two types of Options that are most commonly traded, Call and Put Options. The Option that allows investors and buyers to buy shares at a later time is called “Call Option”. Whereas, the Option that allows to sell your shares at later time is called a “Put Option”.  The important thing to remember here is that there is a time limit. This time limi