Options Trading vs Stock Trading — Which is Better?

Level01 DeFi platform offers options/derivatives trading on Forex, Crypto and Commodity with AI-guidance. More people dabble in stocks than those who trade options. If you are wondering which is better, then read on.

Options allow an investor to trade and profit on a market’s uptrend, downtrend, and even sideways (minimal movement), whereas in stock (spot) trading, your only ‘option’ is buying the stock and selling it for a higher price, which sometimes requires a long term holding strategy, hence potentially locking your funds.

Options allow an investor to trade with the capital they have available in the most effective manner, whereas in spot trading, the more expensive stocks limit an investor’s entry and/or possible higher profits.

Options allow investors better trading strategies to fully capitalize in the financial markets, such as hedging positions and shorting market assets based on due diligence and market research. Level01 innovative FairSense AI can predicts your win ratio using big data from Bloomberg and Thomson Reuters.

With options, traders do not need to focus on the market direction because you can profit no matter prices are going up or down. Which means you can make money from both bull runs and bear downturns.

Options can also create a very high winning percentage, benefiting you mentally as a trader, and giving you that consistency in profits through a variety of proven trading strategies. This helps so that the profit and loss does not look like a roller coaster ride. Another benefit is that options can give more flexibility such as spread and combinations, which can be potentially profitable under any market scenario.

Options are a very flexible tool and only options offer many choices to profit in every type of market, bullish or bearish. You can choose to trade according to your risk appetite, available capital and short and long-term financial goals.

Other than that, options also allow for higher returns using smaller capitals. It allows you to trade more often (by minutes or hours). This effectively enables you to earn more trade profits in a shorter period.

The downside is Options have more advanced trading mechanics that need to should be well understood before you start trading.

Level01 DeFi platform provides AI-guidance, real-time pricing from Bloomberg and Thomson Reuters and it is completely decentralized (you are in total control of your funds) to help you start your journey in options trading with ease and peace of mind.

Try it out for free here,
Google Play Store: https://play.google.com/store/apps/details?id=io.level01.android
APK: https://level01.io/download-apk-2/