When unfolding the topic of options trading, we first require to have a clear understanding of what the term ‘options’ indicate. Options to an investor is an great investment options like mutual funds, bonds, and stocks but at the very same time options distinct from the other kinds of securities listed in being a little more complicated than these. Options refer to a contract that provides the owner the right to buy or sell an asset at a particular price on or before a particular date. It is called options because the buyer has the right but the responsibility to trade his stocks and enjoy unlimited profit and limited risks.

Options are of two types depending on be it is the right to purchase or sell an asset. In case, it provides the owner the right to purchase an asset at a particular rate within a specified period of time then it would be categorized as a “call”. And on the other hand if it’s right to sell an asset under the same conditions then it would be a ‘put’. Investors of call have long position and that means that they are full of hope that the prices of the securities will rise within the stipulated. On other hand, buyers of put have a short position earnestly hope that rates of securities would fall before their option expires.

The options market includes four various sorts of traders that include buyers and sellers of call and put. The benefit of holding options trading is that options empower you to make money not only when the option prices goes down but also when the market is dwindling. This is one reason that one requires to be very speculative when trading with options. While purchasing options it means that you not only have to envisage whether the market will fall or rise but you should have an approx idea as to how much the prices will go up or down and within what time frame since options definitely expires after a particular period.

Camelot Derivatives, a leading name for option trading, are specialising in the trading of international index options. If you are looking to options trading dealer, Camelot Derivatives will be the right choice for you.