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Option trading FAQs
What is option trading? Option trading is the the purchase and/or sale of one or more option positions and possibly an underlying position. What are the option positions? The option positions used can be long and/or short positions in calls or puts at various strikes. What is a call option? A call is a contract between the buyer and the seller of the option. The buyer has the right but not the obligation to buy a commodity from the seller at a certain time (the expiration date) for a certain price (the strike price). The seller is obligated to sell the commodity should the buyer so decide. The buyer pays a fee (called a premium) for this right. What is a put option? A put is a contract whereby the buyer acquires a short position by purchasing the right to sell the underlying position to the seller for a specified price during a specified period of time. If the buyer exercises their right, the seller is obligated to buy the underlying position from them at the agreed upon strike price, regardless of the current market price. In exchange for having this option, the buyer pays the seller a premium fee. What is the difference between options and futures? The primary difference between options and futures lies in the obligation placed on the contract buyers and sellers. In a futures contract both participants in the contract are obliged to buy or sell the underlying asset at the specified price on settlement day. As a result both buyers and sellers of futures face the same amount of risk.
14:52 Mon 15 November 2010
Category: trading
Tags:
option trading
option trading FAQs
trading options
call options
strike price
put options
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Hi Rhonda, if you are a homeowner you shouldn't have any problem getting a loan for $4000. It is generally harder to get an unsecured loan once you are retired - but because you have a regular pension you may be eligible. Call into your bank for free advice.
iam righting to ask if there is a loan place i can go because i need 4000 to pay my bills off. so i can just have one bill to pay each month.i dont work anymore i have retried. and i am on a pension and i get 500 a fortnite. iam fineing it very hard ti get by. thank u for your time rhonda
That's great advice, thanks!
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I'm in a similar situation Jodie. I managed to get a 2000 loan but it has helped a lot. Make an appontment to talk to your bank. Good luck!
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