Leocravensky

Its 1 of the financial instrument that can earn you money if the market goes down, but its a high risk investment which might cause you to lose the full capital invested.

So I will like to learn more about such an investment as I believe its a worthwhile "gamble" provided with the right studies.

So any 1 deal with options contracts before? Any sharing of insights or experience?

Thanks!

Leo~
Blog : leoandsong.blogspot.com

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Hirakawa

What is options? I only heard of bullion, commodity, forex

abcy8

I tried trading options a few years back.
In my opinion, it is one of the most complicated instrument to trade.

Leocravensky

Yes it is thats why i'm searching for info and tips =)

Leo~
Blog : leoandsong.blogspot.com

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simpleforex

An option is a right, but not an obligation, to buy or sell an underlying asset at an agreed price (strike) within a pre-determined timeframe.

You could buy or sell this right even if you do not have possession of the underlying asset. Buying an option does not carry any risk as you have no obligation to deliver but you maintain the right to exercise anytime before expiration (American model) or you can only exercise on expiration (European model)

You could also sell this right in which case you write the option (as in underwriting) and you carry an unlimited risk then. Writing is a very profitable exercise provided one is well versed in the underlying asset and the means to cover and mitigate the risk.

There are exchange traded options and OTC options and recently we started seeing digital options. Digital options are common nowadays because it is much easier these days with a computer to be able to accurately work out the value of an option. Options are normally valued using the Black Scholes model.

There are many options combinations that can be used for a variety of strategies and situations..conversions, straddles, strangles..butterflies..condors...but all of these are just variations of two basic spreads...the bull spread and the bear spread and it is just how one combine or stack up these two spreads.

The use of options is only limited by your very own creativity and is very profitable for those willing to take the effort to understand the dynamics of it.

Simple 1 Step FOREX
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peter77

Invest in Unit Trust for extra income...please call 8333 3622 for more info. Agents are welcome to co-broke...

Nil Sine Labore.
Cheers,
Peter Lim
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simpleforex

Trading options is very simple to do. All trading is simple because it is just a matter of buying or selling.

If you sell higher than you buy, you have a profit. If you buy higher than you sell, you have a loss.

You do not have to buy first to sell, you could sell first then buy.

Trading in options or in anything for that matter is simple, always have been and always will be.

Understanding options is a different thing entirely because options are 3 dimensional because of time factor so it's value is not static and very much dynamic so the calculation of it's intrinsic and extrinsic values to make up it's true value is often too much for most people.

Simple 1 Step FOREX
Financing provided.

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World IR

very complicated kind of structured products.... not for the faint heart

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Leocravensky

Thanks for the short and sweet advice!

Leo~
Blog : leoandsong.blogspot.com

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