Options Trading Basics - Introduction

Posted by Pierre de la Fortune on December 22, 2015 @ 12:01 a.m.

Written by Dr. Melvin Pasternak

Today, business and investment news tout options trading as a new financial innovation or a new trading method known to traders today. However, contrary to popular belief, options trading or the use of options as a financial instrument isn't a new innovation at all. In fact, options trading has a much longer history than most people knew about, a history that goes way back to the times before Christ was born! Indeed, options trading has come a long long way to become the most versatile trading instrument in the world today. Yes, options trading did not just spring from the drawing boards of some financial scientist to become as comprehensive as it is today. Options trading has evolved over thousands of years and understanding the history of options trading gives options traders an appreciation of the depth of this renowned trading instrument.

Options Trading is truly the favorite financial instrument of small retail investors over the past few decades all over the world. Options Trading allows investors with very small funds to gain disproportionately big profits and to control stocks that would otherwise be too expensive to own. Indeed, there are many Options Trading gurus out there who have created million dollar accounts out of only $20,000 or $50,000. In fact, you could start options trading even if you have only $80 to spare! Options Trading also opens a whole new world of possibilities as the true power of stock options lies in its versatility. You could trade options for leverage as well as for protection and change the directional bias in your portfolio very quickly and conveniently.

Because Options Trading is so powerful, its also extremely complex and dangerous if it is not handled carefully. Options traders need a very firm knowledge of Options Trading Basics before even thinking of ways to make money out of it. Here, we shall impart to you all the basic options trading knowledge you need to get started... for free!

Many people attend weekend seminars for thousands of dollars just to learn Options Trading basics. Here, we shall attempt to cover most of these Options Trading basics so that you can decide if Options Trading is your cup of tea and whether you wish to pursue it further or not. Remember, the topics recommended here are only the basics to get you start and you certainly need to pursue deeper investment knowledge to make a consistent profit from Options Trading.

For more info please visit: http://www.optiontradingpedia.com/history_of_options_trading.htm

Is this article helpful?


wow gold

Basically Hence Iz you would think all of these may be way too design although wow gold http://www.ige.com are fantastic for all of the colder the winter season i adore the jewelry element. wow gold http://www.ige.com are a great attention grabber neverth

Write something about this article:

Money Blitz Word of the Day

Sector Rotation: The LOM Fixed Income Portfolio’s are managed with a “sector rotation” style. Our managers look at the market in terms of individual sectors, i.e. governments, corporates, asset-backed securities, mortgage securities, etc. Relative valuation between sectors is an important consideration. We will invest in those sectors that offer good absolute and relative value with consideration given to the sector’s performance outlook and its historical spread to Treasuries. Sectors, which LOM believes are undervalued, will generally be over weighted in the Portfolio and subsequently sold as they become fully valued.

Money Blitz Quote of the Day

American Psycho (2000) “I have all the characteristics of a human being: blood, flesh, skin, hair; but not a single, clear, identifiable emotion, except for greed and disgust.” -Patrick Bateman

WatchList Quote

Major Index WatchList

EUR & USD Interactive Chart