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
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
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
Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.