August 26, 2007

Stock options trading

Options can be used in a variety of ways to profit from a rise or fall in the underlying market. The most basic strategies employ put and call options as a low capital means of garnering a profit on market movement. Options can also be used as insurance policies in a wide variety of trading scenarios. You probably have insurance on your car or house because it is the responsible and safe thing to do. Options provide the same kind of safety net for trades and investments, stock options trading also increase your leverage by enabling you to control the shares of a specific stock without tying up a large amount of capital in your trading account.

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