Options Trading. Instead they basically buy an option with the goal of selling it before it expires in order to make a profit. You re buying and selling options on the options market.
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Trading options involves buying or selling a stock at a set price for a limited period of time. What is options trading. Most people who own options almost never exercise their option to buy or sell the shares of stock that the option is based on before the expiration date.
Options as derivatives options belong to the larger group of securities known as derivatives.
Options are leveraged instruments i e they allow traders to amplify the benefit by risking smaller amounts than would otherwise be required if trading the underlying asset itself. Options trading can be speculative in nature and carry substantial risk of loss. Instead they basically buy an option with the goal of selling it before it expires in order to make a profit. You re buying and selling options on the options market.
