A beginner's guide to options trading | Metals Mine

  • A beginner's guide to options trading

    From star-telegram.com

    An option is a financial instrument whose value is tied to an underlying asset; this is known as a derivative. Instead of buying an asset, such as company stock, outright, an options contract allows the investor to potentially profit from price changes in the underlying asset without actually owning it. Because options contracts may be much cheaper to come by than the underlying asset, trading options can offer investors leverage that may result in significant gains if the market moves in the right direction. But options are very risky, and can also result in steep losses. That's why investors must meet certain ... (full story)

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