What is option trading ?🔥
If you are looking for a profitable and different method of investing, today I present you the option trading a way to invest with high profitability and also high risk but do not worry I am going to show you how you can be successful in this investment method with option trading
What is options trading?✔️
Options trading is the trading of assets that have the right to buy or sell at a specific price on a certain date, generally in packages of 100 assets, there are options for all types of assets, the most famous being the stock options, the options trading is done through a broker
The Basics of Options Trading
What are call options?✔️
When you buy a call option you have the right to buy an asset at a certain price in a market rate, if the value of the asset or the market increases you will obtain a greater profit
What are put options?✔️
When you buy a put option you have the right to sell an asset at a certain price in a market rate, the more the asset decreases, the more benefits you will have.
How can you hedge with options?✔️
When trading options, you can have a careful mechanism that will limit your losses according to the type of option you buy, it is used as a stop loss, that is, it mitigates the loss or profit at a certain price by cutting it if the price falls. and thus sending her losses.