Follow these steps to know what kind of options trading suits you
Trading in securities at a pre-determined price, whether buying or selling, is preferred by many because trading in options provide good money-making opportunities. Options are derivative contracts that come with conditions attached that allow the holders of the contract to buy or sell it at a chosen price. Options sellers carry more risks than option buyers which is why they demand a premium from buyers. However, in case of prices are not favorable, sellers can protect their interests by allowing the option to expire so that the losses do not exceed the premium.Options have been around for more than 45 years, having made its first appearance in 1973, but failed to attract investors as most felt it was tough to understand and were just too much sophisticated. Indeed, options are someth...