Part 4 Learn Institutional Trading

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Participants in the Options Market

There are four types of participants in the options market:

Buyers of Call Options – Expect the price to go up.

Sellers of Call Options – Expect the price to stay the same or fall.

Buyers of Put Options – Expect the price to fall.

Sellers of Put Options – Expect the price to stay the same or rise.

Buyers take limited risk (the premium) with unlimited profit potential, while sellers take limited profit (the premium received) but unlimited risk.

Penafian

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