One thought on “What are options and how do you trade them?

  1. Arti says:

    Trading Floor News
    February 1, 2021 4:45 PM Trading Floor News
    February 1, 2021 4:45 PM Trading Floor News
    February 1, 2021 4:45 PM Let’s look at each. Let’s look at each. As there are only two types of options (puts and calls) and you can be long or short either of them, there are four possible positions you can have when trading an option. Many traders like to think of options as insurance contracts, and this can be useful in understanding the major difference between long and short options. Purchasing options are very similar to buying insurance contracts. For example, you’d pay a set amount and then the insurance would payout a very large sum if certain parameters are met.

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