Database Trading

It comes with limited downside risk, making it a safer investment than futures or margin trading. In addition, option trading can be more complex than other financial instruments, as it requires traders to have a good understanding of the underlying asset and market conditions.

Yes, you can make a lot of money, or lose a lot of money, trading options. Options provide a leveraged payoff on some underlying asset, such a stock. Below are the basics and some points to be aware of. The prices of options are based on the movement of some underlying asset, often stocks.