Chapter 1: What are options?
Option markets have been operating through the major stock exchanges in many countries since the 1970s. In most cases, these markets have experienced significant growth since then in both the number of options traded and the range of options available. Why? Because options are an amazing trading tool that can be used in a wide range of strategies. Option strategies can vary in time frame, risk and purpose to suit the needs of a wide range of investors and traders. In this chapter we will define what options are, how they work and some of the many ways in which they can be used to enhance your trading outcomes.
In this book, we will be referring to exchange traded options over stocks or shares, unless specified ...
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