Part 12 Trading Master Class With Experts What Are Options?
Options are financial derivatives whose value is based on an underlying asset. They come in two primary types:
Call Option
A call option gives the buyer the right to buy an asset at a pre-decided price (strike price) before the expiry date.
Traders buy calls when they expect the market to go up.
Put Option
A put option gives the buyer the right to sell an asset at a strike price before expiry.
Traders buy puts when they expect the market to go down.
