What is a option?
An option is a legal right but no obligation to buy or sell a security at or within a specified future date.
There are many ways to use options, and many ways to make money on these.
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Option = right to buy or sell a security at the agreed time and price.
When you trade options, you will have no obligation to do anything at all, but only an optional opportunity to exercise the option.
value of an option at any time is influenced by the expected value of the underlying security.
underlying security of an option can be many things - such as a stock, currency, commodity, index, contract, or anything else of value.
Options in business
When it comes to "common options" in the business world, the underlying security be more than just a stock, commodity, index or currency.
These are options where the underlying may also be agreements or contracts, for example, an option where one purchases a right to a future date given the opportunity to extend an agreement of a different content.
For example, in football clubs, it is common to use options, where it gets a real option (an opportunity) to extend a player contract beyond the original contract.
Options reward
employment options often used as a reward form as a supplement to wages. This is often a performance-enhancing way to reward employees.
Plain is to provide managers, especially senior managers in major listed companies, options. This serves as motivation and purpose is to promote better prestansjoner at the receiving switch. If the manager manages it well, the share price could rise sharply, and the manager will earn money to exercise the option for a profit.
Option as a tender?
Options can also be used as a tender. They are used often in private and public procurement of machinery, equipment and other items purchased.
that invite request to get a quote on a specific performance, although it is not at all certain whether this performance will be ordered. It is then set some conditions to book this performance. It may be that within a specified period, the book, and this becomes tender.
In addition, the price of the option will be a part of the tender documents. These are therefore as in assessing which of the tenders will contract in the end.
Making money trading options online
If you want to make money on options, which is entirely possible, so we recommend that you start trading options. This is a common trading instrument, and an option type that is easy to deal with.
The easiest way to make money on options are starting to trade with an online broker, and attempt to develop a profitable strategy as quickly as possible.
Choose from the top shelf on this list, and you are guaranteed a good trading experience with the possibility of huge returns on your investments.
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