OPTIONS Trading on Binance.
I have seen that many people believe that options are difficult or complicated, but this is because they do not know what options trading consists of, here I will give a brief and simple explanation:
Imagine that options are like contracts that give you the ability to buy or sell something in the future at an agreed upon price.
For example, if you buy a call option on a company's stock at $100 expiring in one month, this means that you have the right, but not the obligation, to buy those shares at $100 in the future. If the stock price rises above $100, you can exercise the option and buy it at that price, thus making a profit.
On the other hand, if you buy a put option on those same shares at $100 expiring in one month, you would have the right, but not the obligation, to sell those shares at $100 in the future. If the stock price falls below $100, you can exercise the option and sell the stock at that price, thus protecting yourself from losses.
I hope this simpler explanation helps you better understand the concept of options trading.
