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Options is a very multisided trading instrument. As the option cost is lower than the cost of the basic active (in this case, a trading pair), it enables trade with a credit arm providing better risks management. Said in plain words, the options buyers receive specific rights but are not obliged to buy (call) or sell (put) the basic currency for a set price before the tool duration expires. There are two options kinds: call and put. Call options allow a trader to buy a specific active as the put options – to sell a basic active. The obligatory is learning the characteristics and functions of any of them. Any strategy you learn about later on depends on your clear understanding of the essence of these two option types.

There are no margin requirements for an option purchase, as the risk is limited by its price. There are trading platforms that allow you to purchase options and close these positions. The price an option owner can sell or buy a basic asset for this option is called strike. Options are available for several strike prices that are higher or lower than certain currency.

The data of the option contract expiration is the option’s deadline. The option’s duration information is available for a prospective buyer before it’s price is fixed and it is sold.