OPTION TRADING Options trading is a type of investing that allows you to take a position on the future price of a stock or other asset without actually owning the underlying asset . Options allow you to speculate on the direction of a security 's price without having to put up the full value of the security . You can buy or sell options contracts on various financial instruments such as stocks , indices , currencies , and commodities . With options trading , you can limit your risk by setting predetermined limits on potential losses . Options trading also has a wide variety of strategies to choose from , depending on your risk tolerance , investment objectives , and market conditions . Some of the more popular strategies include buying call options , selling put options , and using spreads . Each strategy has its own set of advantages and disadvant...
