What You Need to Know About Trading Options | TradeStation

What You Need to Know About Trading Options

May 13, 2020

Trading options will require a trader to commit to understanding the terms used when trading options, as well as to consider some additional tools to trade. Options trades are traded on an options chain. There are a lot of options to choose from, different strikes and different expires. Sometime having the choice to buy or sell a variety of options can feel overwhelming but with a trade plan, and a system to collect information about the underlying instrument you are trading, and an understanding of how options are priced, you can learn appreciate the benefits of options trading.

Experienced options traders always have a plan before entering a trade. This plan includes how many contracts to buy or sell, how much risk they are willing to take, or how much money they are willing to lose on a single trade and at which price point to exit a trade for profit.

Discover the advantages of trading Options with TradeStation

See also

What is an Option?

What is an Option?

Market BasicsOptionsAn option is a type of security that grants the trader the right to buy or sell an underlying asset. The underlying instrument is commonly a stock, but options can also be traded on a variety of ETFs and futures. There are two...

What is an Option?

Why Trade Options?

Market BasicsOptionsTrading options offer several advantages to just trading stocks. Limited Risk – Buying a call or put option offers the trader unlimited potential profit and limits maximum risk to the price premium paid for the option. Conversely,...

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TradeStation Crypto, Inc. is neither a securities broker dealer nor an FCM, and offers to self-directed investors and traders cryptocurrency brokerage services under federal and state money services business/money-transmitter and similar registrations and licenses (TradeStation Crypto is not a member of FINRA, SIPC, CME, NFA or any equities or futures exchange, and does not offer Equities or Futures accounts).

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You Can Trade, Inc. is an online educational, news and entertainment media publication service that seeks to provide to the public a marketplace of potentially actionable investment and trading content, ideas, demonstrations and informational tools. You Can Trade is not an investment, trading or financial adviser or pool, broker-dealer, futures commission merchant, investment research company, digital asset or cryptocurrency exchange or broker, or any other kind of financial or money services company, and does not give any investment, trading or financial advice, or research analyses or recommendations, or make any judgments, hold any opinions, or make any other recommendations, about whether you should purchase, sell, own or hold any security, futures contract or other derivative, or digital asset or digital asset derivative, or any class, category or sector of any of the foregoing, or whether you should make any allocation of your invested capital between or among any of the foregoing.

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