It is easy to dismiss the benefits of a trade if the most typical description attached to it is risk. But it should not be so. There are great benefits that may be taken from participating in options trading that most people overlook. One should take into account that all types of trades have inherent risks but they also offer advantages in return.
Flexibility
Although it is true that options trading may not fit everyone, it still does not change the fact that to those traders who have made this trade work for them, it is clear for them that options offer great flexibility for both the option buyer and the seller.
Most types of trading do not allow profiting from the underlying asset. However, with option trading this is very possible. There are various strategies traders use to maximize this advantage.
Protection
In comparison to other kinds of trades, particularly stock trading, options trading could give better protection to its participants. Significant losses are typically uncommon in this trade since traders only lose what they have invested and more often than not, investments are just minimal because they are limited only to the price...
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