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Are Options Trading Risky_
I
istockmoney
3 Views • Jun 21, 2013
Description
Option trading is risky. I will try to highlight the differences of trading stocks and options. Options a contract for a given time. You buy time for limited term. It could be one month two month or one year more or less. The more time you need for your trading you pay more. If you go long you buy a call and if you want to short you buy a put. Options are very cheap compared to buying the one lot of stocks. The problem reside in the intrinsic value which goes too fast in both directions. Therefore you can have a good profit or you can lose a lot. My advice is if you succeed to make money in stocks, you will be able to make money also in options. Thanks for watching.
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