Active options trading. TRADING DOCUMENTATION
Option buyers are charged an amount called a "premium" by the sellers for such a right. In contrast, option sellers option writers assume greater risk than the option buyers, which is why they demand this premium.
Send to Separate multiple e-mail addresses with commas Please enter a valid e-mail address Your E-Mail Address Please enter a valid e-mail address Message Optional Important legal information about the e-mail you will be sending. By using this service, you agree to input your real e-mail address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an e-mail.
Options are divided into "call" and "put" options. There are some advantages to trading options.
The following are basic option strategies for cerich demo account. Potential profit is unlimited, as the option payoff will increase along with the underlying asset price until expiration, and there is theoretically no limit to how high it can go.
With a put option, if the underlying rises past the option's strike price, the option will simply expire worthlessly.
In exchange for this risk, a covered call strategy provides limited downside protection in the form of premium received when selling the call option. A protective put is a long put, like the strategy we discussed above; however, the goal, as the name implies, is downside protection versus attempting to profit from a downside move. If a trader owns shares that he or she is bullish on in the long run but wants to protect against a decline in the short run, they may purchase a protective put.
Hence, the position can effectively be thought of as an insurance strategy. The trader can set the strike price below the current price to reduce premium payment at the expense of decreasing downside protection.
This can be thought of as deductible insurance. The active options trading put options are available: June options.