Options Trading
When used correctly, options can be a powerful way of enhancing your portfolio, and they can be used for both outright speculation and to manage risk for other investments.Options are derivatives, since they rely on the movements of something underlying. This can for instance be a share price, a commodity price or an index. If you make a profit or not from the option you bought will depend on the price movements of the underlying. Because of this, options can be used to gain exposure to an asset without actually owning that asset.What´s the difference between a call option and a put option?A call option gives the holder a right, but not an obligation, to buy something at a pre-determined price on or before a certain date. .A put option gives the holder a right, but not an o...
