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Showing posts with the label What Option Trading is and How It Works

What Option Trading is and How It Works

Hello friends now a days every trader wants to learn option trading  but we all need to understand  ( ABC ) of option trading  Over a experience of 17 + years I have seen big scale jump into option volumes it itself says people are more interested in such trading instrument  lets understand how to trade all direction buy using option  Swing up Swing Down  Sideways - Natural  Mainly we have 3 direction to paly   we have three objective of option trading  Three objectives for options trading There are three general objectives when determining your options trading strategy: Hedging  – Hedging against a price decline of a stock you already own Generating income  – Earning from a stock you own and are willing to sell Speculating  – Profiting from a stock's price change Option trading is a popular financial instrument that allows investors to speculate on the price movements of various assets, such as stocks, commodities, curren...