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Understanding Option Trading


An option provides the owner the right to buy or sell an asset at a pre-determined price before or on a certain date. Options are basically of two types - Calls and Puts. A call provides the right to the owner to buy an asset while a put provides the right to the owner to sell an asset. Trading options can be very profitable for the owners.  However, it is important to gain a proper knowledge and an understanding of options trading terms.

This infographic has been designed to make it easier for you to understand option trading.

 

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Edited by Kim

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