CHAPTER 5
Over-the-Counter Options
Over-the-counter options are options traded between two parties that are nonstandardized so that the option can be tailored for any business or individual need. Most of the time one of the parties, and it’s usually the writer of the option, is a well-capitalized institution such as a bank or an online broker. The option types that are mainly traded over the counter are:
• Stocks (stock options)
• Forex (currency options)
• Stock market (index options)
• Binary options
These are the types of options that you will be able to trade on your chosen online brokers platform.
Trading Stock Options
Stock options can be traded on most online brokers’ platforms. As with all trading, before you trade with your own money, ...
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