How options trading works: The investing strategy used by Wall Street

How options trading works: The investing strategy used by Wall Street

Experienced investors leverage a unique financial tool to protect their assets: options. An options contract is a financial tool that allows an investor to pay a fixed sum of money to lock in a set price to either buy or sell an asset at a future date. But when new investors wade into options trading, they tend not to employ the same strategies as Wall Street pros. Watch the video above to learn more about options contracts and the specific strategy experienced investors use to hedge their bets.

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About the Author: Chaz Cutler

My name is Chasity. I love to follow the stock market and financial news!