"Options Trading"

How it works, Types, Requirements, Strategies & How to Trade Options?

What is Options Trading ?

Options trading is a financial strategy that involves buying and selling contracts granting the right (but not the obligation) to buy or sell an underlying asset at a predetermined price within a specific time frame.

How Does Option Trading Work ?

Option trading enables traders to speculate on price movements, hedge against potential losses, generate income, or employ various strategies to capitalize on market conditions.

Types of Options

There are two types of options: call and put options. A call option gives holder the right to buy the underlying asset at strike price, while a put option gives holder the right to sell the underlying asset at strike price.

Who is Eligible for Options Trading ?

Individuals who have a brokerage account and meet the minimum age and financial requirements set by their respective country's regulatory authorities are eligible for options trading.

Options Trading Strategies

Some popular options trading strategies includes, Covered Call, Protective Put, Long Straddle, Long Strangle, Bull Call Spread, Bear Put Spread, Iron Condor, Covered Put, Collar Strategy and more.

How to Trade Options ?

check requirements

To start options trading, educate yourself on the basics, open a brokerage account, and familiarize yourself with different strategies.