Terms

Options Trading

Options trading is a rather high-risk area of the investment world where you can pay for the option to buy or sell a specific security at a set price on a future date. The prices of these securities are affected by market fluctuations so the value of options rises and falls until its maturity date. If you are interested in trading options, you’ll need an account with a brokerage that supports options. Each platform is unique and has its own pros and cons, so it is best to understand what you want in an options account and platform before you get started.