Bought Put Option liquidated with 10 pips nett profit. Investment : 38 pips (includes commission). Because I bought the option, so no margin deposit is needed by the broker.
A contract value of GBP62,500 - (10,000 pips each with a value of GBP 6.25) 38 pips means 10,000/38 means = 263 times leverage given by the Exchange without asking for any margin deposit or me borrowing any money from the broker.
Buying options helps you learn trading without stress and fear of margin call or fear of Stop Loss being hit frequently.
It is as simple as buying it outright and liquidating with profit or loss without waiting too long. It is a quick bet that has to be in profit or loss within 3 or 4 weeks.
As long as you avoid terminology which is mostly used for SELLING of options, you have no reason to get intimidated.
Before turning momentum futures trader, I spent 7 years only Buying Options.
A contract value of GBP62,500 - (10,000 pips each with a value of GBP 6.25) 38 pips means 10,000/38 means = 263 times leverage given by the Exchange without asking for any margin deposit or me borrowing any money from the broker.
Buying options helps you learn trading without stress and fear of margin call or fear of Stop Loss being hit frequently.
It is as simple as buying it outright and liquidating with profit or loss without waiting too long. It is a quick bet that has to be in profit or loss within 3 or 4 weeks.
As long as you avoid terminology which is mostly used for SELLING of options, you have no reason to get intimidated.
Before turning momentum futures trader, I spent 7 years only Buying Options.
Practice makes a person perfect