How Options Work in Real Life
Imagine buying insurance:
You pay a premium to the insurance company.
If an accident happens, you claim and get compensated.
If nothing happens, your premium is lost.
Options work the same way:
Premium = Insurance cost.
Strike Price = Insured value.
Expiry Date = Policy end date.
So, options are like insurance policies for traders!
Why Trade Options? (Advantages)
Leverage: Small capital can control a large position.
Flexibility: Profit in bullish, bearish, or sideways markets.
Hedging: Protects portfolio from big losses.
Defined Risk for Buyers: You only lose the premium paid.
Income Generation: Sellers earn premium regularly.
Imagine buying insurance:
You pay a premium to the insurance company.
If an accident happens, you claim and get compensated.
If nothing happens, your premium is lost.
Options work the same way:
Premium = Insurance cost.
Strike Price = Insured value.
Expiry Date = Policy end date.
So, options are like insurance policies for traders!
Why Trade Options? (Advantages)
Leverage: Small capital can control a large position.
Flexibility: Profit in bullish, bearish, or sideways markets.
Hedging: Protects portfolio from big losses.
Defined Risk for Buyers: You only lose the premium paid.
Income Generation: Sellers earn premium regularly.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.