Category:Options Trading

Options Trading

Options Trading is when an owner enters into a contract to trade a particular underlying asset. They are not buying the actual asset itself, but rather they are buying an option i.e. they are entering into a contract to buy or sell assets at a fixed price within a specified time frame.

The benefit of option trading over asset trading is that there is a much greater chance of a trade being successful, then if a person bought the asset itself. Also, since options only cost a fraction of the actual price of the underlying stock, option trading allows investors to participate in the move of a high priced asset, using only a small capital outlay.

There are different types of assets available for trading options: currency pairs, indices, stocks and commodities. anyoption™ offers over 50 assets which can be traded online. Investors can choose from indices in the United States, Europe, the Americas, Asia and the Middle East; 12 different combinations of currency pairs; commodities of copper, gold, oil and silver; and stocks in top companies such as Apple, Coca Cola, Google, Microsoft and Barclays.

A trader can also select from different expiry times: the nearest hour, end of the day, week or month. This makes options trading more interesting and flexibe, which is appealing to many news traders.

A trade is successful depending on whether it expires above or below its strike price. anyoption™ offers a trader a 65%-71% payout when the option expires in-the-money, and a 15% return if the option expires out-of-the-money. An option cannot be sold before its expiry time.