4 Steps To Follow In Options Trading

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Options trading has become one of the most preferred investment mechanisms in recent years. For newbies, it can be a daunting task.

We have written this guide for beginners who are eager to enter the world of options but need more knowledge and want to improve.

1. Open An Options Trading Account

The broker will assign the initial trading level based on risk levels, which will be the trader’s key to placing certain types of  options trades.

2. Select The  Options Contract

If you expect the market to increase, buy a call option or sell a put option. If the market goes down, sell a call option or buy a put option.

3. Predict The Strike Price

Predicting the correct strike price is extremely important.  Note: you cannot choose just any strike price.

4. Predict The Option  Time Frame

Selecting proper options trading strategies is very important as these strategies can decide if and how much profit you can make.

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