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There is a lot of money in the stock market, but not everyone can make money out of it,
some people can make a lot in the stock market, but some have lost a lot of money there.
He is very undecided. Right now you are losing money, but after a few days you can make a profit and at some point it is the other way around.
So how are we supposed to get the money out of the exchange? There are basically two ways to get money from the stock market. Stock exchange; they invest and act.
The difference between trading and investing is that trading involves buying and selling stocks, futures or options in a short amount of time; whereas investing is buying stocks, futures or options and holding them for some time, usually a year or more, before they are sold. What is the difference between action, future and option? What we do know is that option is much cheaper than action. and in the future it is usually ten times below the share price.
So if you have enough money to buy 100 units of stock, you can use that amount of money to buy the 1000 unit option and the return on investment will be about the same between the stock and the option.
you'll make about 10 times as much if you buy options instead of stocks or futures.
The downside, however, is that if you lose on this trade, you will lose almost ten times too. When we trade options, the amount of money we can make and lose is almost the same as when we trade stocks. However, compared to the call option, we need a lot of money to buy stocks.
As a result, the call option's profit and loss percentage is much higher than that of the stock. The example is like buying $ 10 for a unit of shares and $ 1 for a unit of options.
If the stock price falls $ 0.10, the percentage decrease when buying stocks is 1%, but when using the call option it is 10%.Therefore, the profit and loss share of the call option is enormous compared to buying a share, although the share price fluctuates slightly.
Because of the high profits and losses involved in buying an option, trading or investing in an option is like gambling. It is normal for the return on investment to be above 100%.
However, it is also quite normal that you can lose all of your money investing or trading.
In order for you to win more than you lose, you need to know some basic options trading strategies and technical analysis. Option is different from action.
The option has a temporary value; While the stock has no value over time, the value of a stock does not decrease over time, it is only influenced by supply and demand and also by the company's performance has expired.
authorized.If the time comes from the expiration date of the option, there is no time value for this option.In this situation, we will close both positions to take a profit from the market, if the stock price moves in the negative side (opposite side causing a loss) the value of the monetary options will be devalued and the out-of-the -Money option will generate sin, but the profit made from the cash outflow is limited to the price you sell.
The subtraction between the money gained and the money lost is a negative value. This is because the profit made with the out-of-the-money option is less than the loss made with the in-money option; with the money options, the profit is limited with this strategy and with the money options there is a loss unlimited The share price moves down continuously, you can lose all of your equity.
So what's the difference between buying a bare option and buying an option with a spread strategy? The difference is that you can lose more money buying a bare option and lose less money buying spreads. This is because if you only buy a bare option, you will not make a profit; while the profit is generated....