Posts Tagged ‘Trading Education’

Understanding Options and How to Trade Them

In this article I want to describe the basics of options: what they are and how one can trade them.
Options trading is extremely popular and provides far greater possible returns than does trading in the underlying stocks. But it also carries more risk.
So it is extremely important to understand how options work as financial instruments [...]

Options Trading – Benefits of Leverage

Options are riskier to trade than stocks. That’s fairly well known. And we’ll get into why.
Since options have an expiry date the investor has to make a choice within a relatively short time frame. This adds risk and complexity to the trading scenario.
Also, since options are derivatives, they have no inherent worth. Their value is [...]