[isabella]

Hi all, I'm Isabella and joined here recently. I'm also new to forex.

I'd like to know more about Option Trading.

Thanks in advance!!

Isabella

[olivia]

Welcome Isabella

Well, option trading allows traders to profit form every possible move in underlying asset.At times it can be difficult to learn the exact difference between trading in the forex market and trading in the forex options market. In fact option market is parallel to futures markets, which gives you the right as a holder to buy or sell the underlying commodity for a specific price on or before the specific date in the future.

Based upon the similar fundamental instruments of futures, it also has similar contract specifications. However, the options are traded differently. Available on futures markets, on forex it can be traded on their own using various strategies, or can be combined with futures contracts and used as a form of trade insurance.

Options trading can be your best option to earn money. It is more like giving out cash in exchange for potential profit. The best part about Options Trading is that you can have a better control on both the probability of risk and the consequence of risk

Regards,
Olivia

[william]

Hi Isabella, basically, options are contracts concluded between two parties, the buyer and the seller, giving the former rights for the purchase or sale of some underlying asset, with specification of price and validity period. They are also called derivatives for two reasons: the first one claims that option trading derived from stock and futures trading; and the other one explains that option price always depends on (derives from) the value of the underlying (be it stock, index or some commodity).

Option buyer (holder) can exercise his/her prepaid option to dispose of some financial product within agreed time interval but is not obliged to do it. On the other hand, option seller (writer) is obligated to agree to either of the buyer’s decisions. An obvious advantage of option trading is that money can be made without large investments of capital.

[donald1]

hi there,

I take advice to Nifty Option Tips online...before investing in share market.....u can have many mare information there.

Donald

[managedfx]

Originally Posted by isabella

Hi all, I'm Isabella and joined here recently. I'm also new to forex.

I'd like to know more about Option Trading.

Thanks in advance!!

Isabella

Option trading is the idea of buying and selling "options" to purchase or sell a market a specific price on a certain date. If you earn money with the option you cash it in, if not it expires worthless. Hope this helps.