Question

Hello,

Kindly I need a short description and new facts can people learn about " options trading " .

Thank you!!

Answer 1

An option is a contract that gives you the right but not the obligation to buy or sell an asset at a pre-selected price. The pre selected price is called the strike price, K , and the deadline for exercising the option is called the expiration time. An option to buy a financial asset is a call, and the option to sell a asset is a put.

In options trading the seller and the buyer do not meet face to face. All options trading is done through the options clearing corporation which facilitates the market.