Do you know what the Option Trading is?Do you want to know how to trade in Option Trading?When you hear about investment what clicks right away for most people is stocks and bonds. The word options trading escapes unnoticed.
An option is a contract allowing the bearer (but not forcing the bearer) to either put or call the stated asset at a named price within a defined period of time. A call option allows the bearer to buy stock while a put option allows the bearer to sell the stock.
Investors' portfolios are usually made up with a number of asset classes. It could be stocks, currencies, bonds, ETFs or cash equivalents. Another type of asset class is options and when used in an appropriate manner they offer more advantages than stocks and ETFs combined.
Options can positively affect an individual`s portfolio through added income, protection and leverage depending on the situation. Another use is that they help in speculation purposes.
Options are a member of a group of securities called derivatives. From the perspective that, the price of options is dependent on the going price of other assets. Derivatives may include things like; futures, forwards, mortgage-backed securities, calls, and swaps.
Being an asset option can be purchased like any other asset. An investor needs a brokerage account to invest in the stocks they hope will turn their initial investment into a lifetime fortune.
The key features to look in a good broker include;
- Low commissions
- Good research
- Great customer report
Options are best traded in the following platforms;
Best for options overall
E * TRADE offers quite expensive options trades but the magnitude held by this platform is great for options trading and the broker offers different mobile applications.
- InteractiveBrokers- Lowest commissions
InteractiveBrokers is not the best platform for relaxed or unplanned individuals but it propels the industry in international trading and minimum commissions desired by more planned and informed traders.
- TD Ameritrade- Best option tools
The increased expenditure incurred when trading with TD Ameritrade does not go unaccounted for. The brokerage offers amazing platforms, research, mobile apps, education, and customer inquiries. No doubt it has the top-bar grade in all-round experience.
- TradeStation- Well-rounded offering
TradeStation is a well-established trading technology and it is very supportive of its web-based platform and active traders through its awarding desktop platform.
- Charles Schwab- Unique order types
So how much do you need to have in your pocket to start this great investment journey?
Do we have your attention now?
In this book we will discuss the following topics: - The Logic Behind Options Trading and How It Works
- The Differences Between Calls and Puts
- The Best Strategies for Selling Covered Calls
- The Basics of Technical Analysis
- Index Investing and Mutual Funds
- And Many More!
Are you excited?
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What are you waiting for? Download our book now and know everything about Option Trading!
