Breaking down the basics of listed options: A must-read for intermediate traders
For intermediate traders looking to expand their trading strategies and delve into more sophisticated financial instruments, listed options offer an exciting opportunity. Options provide traders with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe. Understanding the basics of listed options is crucial for intermediate traders to make informed decisions and capitalise on market opportunities.
This comprehensive guide will break down the essentials of listed options, empowering intermediate traders with the knowledge they need to navigate this dynamic market successfully.
What are listed options?
Listed options are derivative contracts traded through home.saxo on organised exchanges, such as the Chicago Board Options Exchange (CBOE) or the Options Clearing Corporation (OCC). They derive value from an underlying asset, including stocks, indices, commodities, or currencies.
A listed options contract consists of several key components:
Underlying asset: The underlying asset is the …