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 as follows:

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 or invest in on your chosen online option brokers’ platform.

Trading Stock Options

Stock options can be traded on most online brokers’ platforms. As with all trading, before ...

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