Bet on Options

You will first need to have a full understanding of what an Option actually is before you have any real chance of making a profit by betting on them. They can be very complicated financial tools to the newcomer in this betting environment and as such we will give you an insight into what Options are and how you can bet on them.

Basically an Option is a contract between two different parties and they will sign or agree a contract whereby the owner of the contract can, if he so wishes, buy or sell any asset or any form of financial instrument at a time in the future which is specified and agreed by both parties.

The person who is potentially selling this asset or instrument then has a legal obligation to sell the asset of instrument should the potential buyer wish to purchase it within the time period stated for the pre agreed price.

The buyer must at all times pay a premium to the seller for the right to buy the asset or instrument. This is paid whether he buys it or not within the pre agreed time period.
 

Option Betting and Trading Terminology

There is, as is usually the case, several unique words or phrases associated with betting on options, and this is where a potential minefield of confusing words and phrases are most likely to be found when a new trader betting on options first launches themselves into this environment, however once you initially get your head around the terminology used it soon becomes apparent what everyone means.

Call Option – A Call Option is a right to buy something for a pre agreed price within a set time period.

Put Option – A Put Option is simply the opposite of the above Option and this is a right to sell something once again at a pre agreed price and within a certain amount of time.

Ways to Profit from Option Betting

You may be wondering how it is possible to make a profit from betting on Options, well it is an art form which not a lot of people can truly master. It is solely dependent on what it is exactly you are aiming to buy or sell via these Options that will ultimately enable you to cash in and make a profit.

For example you may purchase an Option to buy Wheat or Oil, and if you make a Call Option, that is agree to buy it at a later date for a set amount, then should the price of Wheat or Oil increase in value between the day you agree the Call Option then it will make you a profit by buying that Option should the value have increased.

If you are interested in learning more about how to bet on Options then we would suggest you sign up at a Binary Options Trader site as once you do you will be able to access a wealth of valuable information, which should guide you through the maze that can be the world of Options betting.