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How does options trading work?

Updated: 9/27/2023
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Wiki User

12y ago

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On Options trading there are only two possible outcomes to the trade. The trader needs to choose whether the price of an asset will go up or down. in case that you win (forecasting the right direction) you can make as much as even 80% in one hour.

You need to take into account that if you lose (the asset price go to the opposite direction from your forecast) you lose all 100%. so there is big potential but a lot of risk.

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12y ago
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12y ago

Options trading can be tricky to learn but once you master it you will be able to buy or sell stocks on the market. There are ""put"" and ""call"" options so whether the market goes up or down you can earn money.Be sure to study before you try either of them!

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10y ago

The definition of options trade is a market trade that may be a buy or a sell trade in which the price for an option is set at a specific amount before a certain date or time.

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11y ago

Options trading refers to the trading of various options on the Stock Market. There are various types of options trading, each with differing rules and terms.

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