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Monday, December 23, 2013

Option Trading Stratagies & Tactics


What is Option Trading?

option trading tactics

Option Trading basically carried out in derivative segment of stock market. Option trading means buying & selling of stock option contracts.

Option Trading System?

Option trader make profit when the option contract price rises then what they brought by selling the option contract. Option trader can be either option seller or option buyer.
Put and call in Option Trading? 

Call option means to buy the stock at a quoted price within the given time, in this one has to pay the premium price of the contract to the option writers, put option means to sell the stock contract at a quoted price within the given time frame.

Software's for option trading?

Binary option software, eSignal Software-easy-to-use platform with connections to multiple options brokers – the best combination of decision support and trade execution you can find OptionVue 7- analytics, it integrates real-time quotes, charting, portfolio management and more.

Benefits and risks of Option trading:

Benefits
Versatility i.e to adjust according to ups & downs of the market, huge returns, lower deposits to trade in option trading, lower deposits to trade in option trading, flexibility.

Risks
Option trading can be speculative in nature and carry substantial risk of loss, option trading involves risk, should know how option trading works, pay the premium price to the writer of the option contract. 

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