How to trade options - basics revisited

[stocktiger]

Hello Members,

Using this forum i wish to commence a discussion on options trading.

It will help us share our knowledge and make an attempt to try successful trading.

From today there will be a new post every week and will be out for a discussion.

In my pursuit of knowledge sharing i request all the distinguished members to participate and mutually benefit from the discussion

Sincerely yours
Stock tiger

 

[stocktiger]

1) Kinds of options

There are two kinds of options. They are American options and European options. The primary difference between these two options is that

American options can be exercised at any time during the life of the contract whereas European options can be exercised only at the time of expiry of the contract.

2) Types of options

There are two types of options. They are call options and put options.

3) Parties involved

In an options contract there 2 parties involved, they are option buyers and option writers

discussion to continue.......................