Analyst Corner

1 min read
by Angel One

What is trade options?

Options are an asset class that offers investment opportunities beyond the scopes of the traditional asset classes like stocks and bonds. Options trading is when you buy and sell an underlying asset at a predetermined rate after a specific future date. However, options are different from stocks and often, trading stock options is more complex than stock investment.

Trading in options requires you to answer questions about which direction a stock will move, by how much and when it will happen?

New investors often avoid options trading, thinking it is high risk. But that is far from the truth. Once you understand how options work, you can diversify your portfolio further and explore investments with higher profit opportunities.