How to Start Trading Options

How to Start Trading Options

Word “Options” heard everyone, who are at least a little interested in trading – however, not always in that context, in which it is needed. Some unscrupulous brokers advertise their services for trading so-called binary options. But this thing has nothing to do with real options and is able to leave a novice trader completely without funds and disappointed in the financial markets in general..

What can not be said about real options. If you know how to trade them, you can make good money on them. Such assets are in great demand, but there are subtleties, you need to know, before you start working with options.

How to Start Options Trading

Such trading is possible on most officially operating stock exchanges.. An option is not an independent asset, he has some other – base, the options themselves belong to derivatives. for example, they can be sold for gold, on shares or anything like that.

There are several peculiarities in trading such derivative assets.:

  • the contract always stipulates the expiration date;
  • the buyer pays a certain amount for the option only for the right to make a transaction;
  • the seller is obliged to make a transaction with this asset;
  • It can be like a purchase, and for sale – such assets work in both directions.

If you purchase a buy option, it is denoted as call. For sale – called put. This classification is reflected in the “binary brokers”, who use the corresponding buttons in the interface of their platforms.

But there is a safe and reliable binary options trading in Russia: there are a number of brokers, qualitatively providing such services. Must be taken into account, that it's usually the wrong companies, who specialize exclusively in BO: they also work with classic trades on “Forex”.

Such trades are limited in time – there are options boards on exchanges, in which the expiration date is located in the column “strike”.

What to choose: ordinary trades or options

Each trader chooses assets, which are easier for him to work with, and the change in price of which seems most understandable. But if you're not comfortable working with those of them., which imply a time limit, it is better to stop at the classic trading – it doesn't matter, in which market.

If it doesn't matter to you, what exactly to trade, or even, conversely, like limited-time trades – then it's definitely your option. You can also consider futures trading – they are similar, but futures have their own specifics. Explore all asset information, who you are going to work with.

Options – Complex, but interesting topic, in which there are many nuances, and working with them is significantly different from working with underlying assets. It is better to learn more about the, what they are, and does the broker give you the opportunity to enter into such transactions. They are mainly held on stock exchanges. – forex brokers for the most part only offer binary options.

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