The魅力 of option trading
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Now, the theme this time isThe魅力 of Options.
When people think of option trading, they may imagine it’s difficult, but that’s not the case.
The difficult deltas and gammas and other Greek letters.
It’s not essential to know them, but there are many other things to know beforehand.
On the other hand, options have major characteristics and魅力 that differ from spot trading and FX trading.
Spot trading and FX trading do not have a concept of expiration.
You can continue to hold a position.
On the other hand, options have an expiration date.
Typically, liquidity is highest for options with maturities within one month.
In terms of stock trading, it’s akin to margin trading or futures. This is actually a major characteristic and a merit itself.
There is no situation where you buy physical stocks and hold them in a salt-out situation.
Within one month, the position is marked-to-market (settled).
In fact, this feature is wonderful.
1) You can face the market each month with a fresh mindset.
There is no carrying over of past failures.
2) Even if something happens to you, it is settled in cash.
In other words, the inheritance is cash. This is a surprisingly important feature.
If you leave an apartment as property, how you manage and operate it is also important, isn’t it?
If you leave real stocks as property, do you also convey how to determine the selling timing and how to value them?
In the worst case, a contractor might do as they please.
On the other hand, with cash, there may be no such issues. If you want to leave assets to loved ones, you should also consider the hardships those people may face.
Note: The above reflects my personal views and is intended solely to improve financial literacy. It is not intended for investment solicitation. Also, although the blog content is based on data from reliable sources, the administrator does not guarantee its accuracy. Final investment decisions should be made at your own risk.
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