Options are perhaps the most versatile of all the trading instruments in the market today. They cost a lot less to transact than stocks. And because of this, traders are able to considerably limit the risks linked with a certain transaction.

There are basically two kinds of options: call options and put options. Call options give the trader the right to purchase assets, while the put options give yout the right to sell.

The good thing about options is that because they are exercised at a specific time frame and its rates are based on a set price, the risks that you stand to face are controlled and limited.

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