What exactly is Options Trading? How does it differ from other forms of investing?
This post is originally from portfolio-hub.co.uk
In today’s post I will be discussing all you need to know on Options Trading as a beginner. Options provide another option for investors to receive a return on their financial assets. I will cover what options trading is, why you might want to trade options and where you should look to get start.
I am not a financial advisor or registered investment adviser. The information contained in this blog post is provided for general educational purposes only. Any advice you take here is at your own risk and when investing, you are taking the full responsibility yourself. You must do your own research before making any decisions.
What is options trading?
Options trading is a type of derivative contract where investors agree to pay a premium (or receive a discount) for the right to purchase or sell a financial instrument at a certain price within a specified time period.
The option buyer has the right to exercise their option at any point during the life of the contract. This means they can decide whether or not to take delivery of the underlying asset. If they don’t want to exercise their option, then they simply let the option expire without taking possession of the underlying asset. In contrast, the…
