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From premmathan to everyone в 08:14, 18/11/16 Reply | Reply in new thread | Edit It all begins with a trader investing on a contract. In option trading, contracts have varying expiry periods. Some can run as short as an hour, while others run several days. Once a trader enters a contract, this individual essentially makes a guess. The trader "guesses" whether the stock or market observed will rise or drop within the contract duration.If a trader believes a particular stock will rise within several days, for instance, he or she will invest on a "call option." If the trader believes otherwise, then the individual will buy a contract called "put option." When the contract expires and the guess is right, the trader then receives payments. Payouts vary from one contract to another. Some may have fixed rates in certain percentages making it look more attractive. Possible risk includes not making any money if the trader makes a wrong call. This is a big possibility in such option trading since stock directions can change. A stock that seems to have enormous potentials in trades may suddenly drop due to the company's decisions or controversies surrounding this commodity. If you entered a call option as you thought it will rise, then you lose money. The same is also true for stocks that seem to be heading into the pits. If you chose a put option in this case and that stock rises, you lose investments.

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From No Scammers to premmathan в 02:49, 20/11/16 Reply | Reply in new thread | Edit

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