What are options?
Benefits of options
Higher trading leverage
Since each option contract represents 100 shares of an asset, any change in the asset’s value has a bigger overall effect than purchasing an individual share.
Hedge your investments
A put option lets you sell your shares of a company at a set price before the option’s expiry date, giving you an easy way to limit your losses if the value of your shares drops.
Expand your strategies
Take advantage of more than just price increases or decreases. The passage of time and movements in volatility can also affect the value of an option contract.
Get answers to frequently asked questions
In options trading, you are purchasing a contract that represents shares of an underlying asset (like a stock) that gives you the right to buy or sell that asset at a set time for a set price.
When you buy a stock, you get a small piece of ownership in a company. Options, on the other hand, are contracts that give you the right to buy or sell an asset at a set price by a set date.