Understanding the foundations of options trading might help you make money, but some fundamentals must be understood. In this article, we’ll introduce you to the world of options trading and show you how it can be used to your advantage. It will also give you some pointers for getting started. Read on if you’re interested in learning more about options trading with a Saxo broker in Dubai.
What is options trading?
Trading derivatives is the art of purchasing and selling options, which are instruments that give you the right to acquire or sell an asset at a specific price on or before a certain date.
Options trading can speculate on the direction of a stock’s price or hedge against existing positions. For example, an investor who owns a corporation’s stock might purchase put options as protection if the price falls.