Join the PU Xtrader Challenge Today
Trade with simulated capital and earn real profits after you pass our trader assessment.
Options trading strategies are usually used by investors to:
Similar to other forms of derivatives trading, options trading is used by investors to speculate on whether the value of a financial instrument will rise or fall. If an asset’s price is expected to rise, a call option can be placed, allowing the option holder to purchase the asset at a lower price and sell it for a profit once the price has risen. Conversely, a put option can be placed if an instrument is expected to fall in price, allowing the option holder to buy the instrument once the price has fallen and sell it at the agreed upon higher price to earn a profit.
Options trading strategies are also used to hedge against other investments traders have made in the markets. For example, an investor may use Forex options trading to hedge against an open position on the Forex market. So, if an investor has placed a long trade on the EUR/USD currency pair, they may also place a put option on the pair as a means of hedging their position. Thus, if the pair rises in value, the long trade will be profitable and the options contract will not be exercised, meaning only the premium has to be paid. On the other hand, if EUR/USD falls in price, the long trade can be closed and the put option will produce a profit.
Trade with simulated capital and earn real profits after you pass our trader assessment.
8 August 2024, 05:30 Oil Prices Surge on Libya Oil Production Close-down
11 July 2023, 06:40 美联储官员强调继续提高利率
13 May 2022, 09:34 Join Us at Traders Fair Financial Expo Philippines 2022