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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