How Option Trading Works
Option trading involves two parties:
Buyer (Holder): Pays a premium to acquire the right to exercise the option.
Seller (Writer): Receives the premium and is obligated to fulfill the contract if the buyer exercises the option.
Unlike stock trading, where the ownership of shares is exchanged, options trading revolves around rights and obligations. The buyer’s risk is limited to the premium paid, while the seller’s risk can be unlimited (especially in naked option writing).
Option trading involves two parties:
Buyer (Holder): Pays a premium to acquire the right to exercise the option.
Seller (Writer): Receives the premium and is obligated to fulfill the contract if the buyer exercises the option.
Unlike stock trading, where the ownership of shares is exchanged, options trading revolves around rights and obligations. The buyer’s risk is limited to the premium paid, while the seller’s risk can be unlimited (especially in naked option writing).
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Details:
Contact : +91 7678446896
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Pubblicazioni correlate
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.