Understanding Equity Trading Vs Option Trading
Options and stocks are two ways to put money to work in the market, but they offer sharply different profiles for risk and reward. Stocks offer high-risk, high-reward potential, while options take that a couple notches higher, with the possibility to double or triple your money (or more) at the risk of losing it all, often in the matter of a few weeks or months.
Stocks and options are closely related, but they’re very different things, especially when it comes to how much you can make or lose.
A stock is an ownership stake in a company, and it rises and falls over time depending on the profitability of the business. In contrast, an option is a side bet among traders over what price a stock will be worth by a certain time.
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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