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What is options trading?

2 Answers

Options trading allows investors to speculate on the future direction of the overall stock market or individual securities, like stocks or bonds. Options contracts give you the choice—but not the obligation—to buy or sell an underlying asset at a specified price by a specified date.

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Options trading is the practice of buying or selling options contracts. These contracts are agreements that give the holder the choice to buy or sell a collection of underlying securities at a set price by a specific date.

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