Natural Gas Futures
Education

Part 1 Candle Stick Patterns

28
Understanding What Option Trading Profits Mean

Option trading profits refer to the financial gains a trader earns by buying or selling options contracts.

These profits arise from correctly predicting price movement in the market.

Options are leveraged instruments, so small price moves can generate large returns.

Profit is calculated based on premium difference, time decay, volatility changes, and strike-to-spot movement.

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