When we talk about financial markets, the first thing that comes into our minds is the word ‘stocks’. The term has been used so many times in the papers and financial fora that it has become a staple in a lot of conversations and discussions about the subject of market movement. However, there is another financial investment instrument that also offers great rewards for those who choose it. And it is in the form of options.
Options are similar to futures, wherein you are given the opportunity to purchase a stock at a particular time and at a pre-determined price. As a trader, you stand to gain if the stock’s value in the market goes beyond the rate you specified under the agreement you signed with options. If the stock value drops, of course, you lose what you invested.