62.58 billion. That's the total number of futures and options contracts traded globally in 2021, according to data released by the FIA (Futures Industry Association). That's up 33.7% from 2020. Last year was the fourth year the “global exchange-traded derivatives markets set a record above the prior year in terms of total trading activity.”
Trading options involve purchasing and selling an underlying asset at a pre-determined price by a specified future date.
If you want to trade options, you must have an options trading account. Compared to a simple brokerage account for stock trading, an options trading account usually requires greater capital involvement.
After successfully opening the options trading account, you must decide on the type of options contract you want to enter.
An option contract is valuable only if the underlying stock price closes the option's expiration period “in the money,” i.e., either above or below the strike price. (Above for call options and below for put options.)
All options contracts have an expiry date, ranging from days to months to years. This period, too, cannot be conjured up from thin air.
How Your Eating Habits Affect your Sleep