How Do Options Work?

How Do Options Work?

Go Broke Investing

19/06/2021 2:38AM

Episode Synopsis "How Do Options Work?"

 Did you know that not all investors buy stock? Some buy options contracts and make money by trading those contracts.  Options are another investment tool that can be used to leverage small investments into very large gains.  In this episode we give a brief breakdown and define the terms associated with options.  "A stock derivative is a financial instrument that contains a value based on the expected future movement and prices of the asset to which it represents or is linked to." - Stock Market Laws.

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