options-trading
Option Trading
Option Trading is when an owner enters into a contract to trade a particular underlying asset.
The benefit of option trading over stock trading is that there is a much greater potential of succeeding in the trade, then if a person bought the stock itself. Also, since stock options only cost a fraction of the actual price of the underlying stock, it allows investors to participate in the move of high priced stock, using only a small capital outlay.
It’s important to note that option trading is different from stock trading. When an owner is buying or selling actual stock or ownership in a company, this is known as stock trading. However, in option trading, the owner is buying the option i.e. they are entering into a contract to buy or sell stocks at a fixed price within a specified time frame.
There are different types of assets available for trading options: stocks, commodities, currency pairs and indices. 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 choose between different expiry times: to the nearest hour, end of the day, week or month. This makes options trading an interesting and flexible way of trading which is appealing to many news traders.
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.
