Options Trading for Beginners: A Comprehensive Guide
Options trading involves buying and selling contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price.
Options trading terminology includes terms such as call options, put options, strike price, expiration date, and premium.
Options trading risks include the potential for loss of the premium paid, the potential for unlimited losses, and the potential for the underlying asset to not move in the desired direction.
Options trading can be used for speculation, hedging, or income generation.
Beginners should start with a basic understanding of options trading terminology and strategies before making any trades.