Using options can help you refine your trading strategy beyond just "buy if it's going up" and "sell if it's going down." For example, the defined-risk component of options trading appeals to many traders. That does not imply, however, that options are risk-free. To make money, you have to get the move's direction, duration, and quantity exactly right. Financial products known as options provide traders the right-but not the obligation-to purchase or sell an underlying asset at a fixed price, or the strike price, on or before a given date, or the expiration date. Typically, an option is worth 100 shares of the underlying stock. Because of its versatility, options enable traders to develop a broad range of trading strategies to take advantage of different market situations, such as direction, volatility, and time decay. Due to the high leverage offered by options, traders can control many shares with comparatively little initial investment. While doing so can boost your potential rewards, it also raises your risk. Get your copy today to find out much more.
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