Options are powerful tools that allows traders to make money in either rising or falling markets. Investors buy or sell options contracts that give them the right to buy or sell an underlying asset at a specific price at a future time.
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A feature of options is that it allows traders to make a lot of money with a relatively small investment. Unlike stocks, where you need to buy shares at their full price, options allow you to control a large amount of stock for a fraction of the cost.
Meaning you can make a significant profit even with a small price movement in the underlying asset.
Another advantage of options is flexible risk management. Traders can use options as hedges to limit their potential losses.
Options can be traded on a variety of underlying assets including stocks, interest rates, indices, commodities, currencies, and more.
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This is not investment advice. Lucidate is not an investment advisor. Options prices can rise and fall. Always consult with a regulated financial adviser before making investment decisions.