For this factor, choices are often thought about less dangerous than stocks (if used correctly). However why would an investor use options? Well, buying choices is generally banking on stocks to increase, down or to hedge a trading position in the market - how to delete a portfolio in yahoo finance. The price at which you accept buy the underlying security by means of the alternative is called the "strike rate," and the charge you spend for buying that alternative contract is called the "premium." When identifying the strike cost, you are wagering that the possession (normally a stock) will increase or down in rate.

There are 2 different sort of choices - call and put options - which offer the investor the right (but not responsibility) to sell or purchase securities. A call alternative is an agreement that offers the financier the right to buy a particular amount of shares (generally 100 per contract) of a specific security or product at a defined

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