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Opt for options trading online An exploration into the unknown takes some chutzpah mixed with a bit of masochistic carelessness. Investing in binary options trading is quite similar.What is an Option?An option is a financial security that derives its value from an underlying security, such as a stock or bond. It is a financial contract with stringent stipulations between a writer and a holder. The contract gives the holder either the right to buy (call) or sell (put) an option at a certain specified price (strike price) between the start of the contract and its expiration date. A holder is not required to act on the option; he or she only has the ability. The price paid for an option is called the premium price, and the value of an option is labeled the intrinsic value.Types of Options AvailableThere are several different types of options besides call and put. American-style options allow the holder to exercise or trade an option at any point before the expiration date, while European-style options only allow the holder to act at the exact expiration date. Exchange-traded options are publicly bought and sold on a public exchange floor, such as the Chicago Board...more
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