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Frequently Asked Questions

How do you explain trading options?

Options allow an investor to reduce risk and provide an improved chance to profit from stock market investments. The simplest way to explain option trading is that investing in a stock option is basically buying the right to “buy or sell” a stock at a certain price if and when you want to.

What are the basics of options trading?

The Basics of Options Trading. Here are some of the basics of options trading. An option is the right, but not obligation, to purchase an underlying security at a certain price in the future. There are two basic options: calls and puts. A “call” is equivalent to a long position and a “put” is similar to a short position.

What are options traders?

Options Traders. As the name suggests, options traders buy and sell options in the capital market. It’s often referred to as online options trading, as most of these trades are conducted through online brokerages. Options trading is different from stock trading in several ways.

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