Guide to Options Trading for Beginners

Guide to Options Trading for Beginners

Options are considered as derivatives as these financial transactions are based on the value of assets or underlying securities. Unlike stocks, options expire on specific dates and they have no specified fixed number when it comes to its availability. Most people may not really understand how options work but some of them have been using it in their trading business. Beginners have to understand that there are two types of options that they can work on. The first one is the call option where they can buy a stock for example at a given price before a specified date for example. This may likened to buying security deposits.

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