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Option Trading Ideas |
In our information era it's so easy to start a business of your own!
No, I don't mean that it doesn't take any effort, but it takes way less
money and knowledge to start a business of your own than it used to be
before, in the times, when one would have to know everything about
business law and have quite a substantial sum of money in
order only to start. In our days almost anyone can become a
participant of online trading. Is this good or bad? Well, it's hard to
say.
On one hand it's better, for the economy at least. On the other the
quality of services a final user is getting are getting somewhat worse.
But we are not talking of philosophical categories today.
We are going to discuss one trading system online in our today's
conversation. To be more precise, it's option trading.
What is it? Well, let's start with a definition.
Well, first of all what is an option in finances? , an option is a
contract between a buyer and a seller that gives the buyer of the
option the right, but not the obligation, to buy or to sell a specified
asset (underlying) on or before the option's expiration time, at an
agreed price, the strike price. In return for granting the option, the
seller collects a payment (the premium) from the buyer. Granting the
option is also referred to as "selling" or "writing" the option.
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