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"Stock option " redirects here. For the employee incentive, see. Employee stock option. In finance, an option is a contract which gives the buyer (the owner or holder of the option ) the right, but not the obligation, to buy or sell an underlying asset.
In/Out, Range or Boundary This option sets a high figure and low figure. Traders predict whether the price will finish within, or outside, of these levels (or boundaries). Touch/No Touch These have set levels, higher or lower than the current price. The trader has to.
However, if the price of EUR/USD drops down to say 1.29 instead, the trader will have lost his initial investment of 100. Note that it does not matter whether the price of EUR/USD skyrocketed up to 1.40 or flash crashed below 1.00, both the profit.
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Read on. Investing in Growth Stocks using LEAPS options. If you are investing the Peter Lynch style, trying to predict the next multi-bagger, then you would want to find out more about LEAPS and why I consider them to be a great option for investing.
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