Is Options Trading Investing or Gambling for Newbie

62.58 billion. That’s the total number of futures and options contracts  traded globally in 2021, according to data released by the FIA (Futures  Industry Association).

These kinds of equities have seen  rapid growth in recent years. Experts expect the numbers to grow in 2022  with interest in option trading.

Trading options involves purchasing and selling an underlying asset at a pre-determined price by a specified future date.

What Are Options Contracts?

Compared to a simple brokerage account for stock trading, an options trading account usually requires  greater capital involvement.

Open an Options Trading Account

After successfully opening the options trading account, you must decide on the type of options contract you want to enter.

Select The Options Contract

An option contract is valuable only  if the underlying stock price closes the option’s expiration period “in  the money,” i.e., either above or below the strike price.

Predict The Strike Price

All options contracts have an expiry date, ranging from days to months to years. This period, too, cannot be  conjured up from thin air.

Predict The Option Time Frame

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