So many options traders have lost their shirts in options trading that almost all investment advisors would advise you against taking a dip into it However, options trading continues to be one of the most powerful money making method available to the masses with its leverage and multitude of multi-directional options trading

The last decade saw explosive growth in the options trading market all over the world Options are now available on almost every imaginable asset, from physical to financial assets

Almost all options traders have heard the age old trading adage that says “The Trend Is Your Friend” Indeed, trading options in the direction of the prevailing market trend definitely puts the odds of winning in your favor

Can you make a living trading options In fact, has anyone ever made a living just trading options

Options trading has been the centre of much debate of recent years Is options trading dangerous

Swing trading is one of the most common ways of trading in the stock market Whether you know it or not, you probably have been swing trading all these while

One of the greatest and most talked about risk in options trading is the fact that you could lose all your money in options trading very quickly Well, many people lose all their money in stock trading too, so what makes losing all your money in options trading such a big deal

Options trading is as simple as buying call options for rising stocks and put options for falling stocks However, once you go beyond the initial stage of call and put buying, the whole universe of thousands of options strategies open up before you

After spending much time explaining the differences between options trading and futures trading to beginners to derivatives trading, I think its time to touch on the similarities between options trading and futures trading Is options trading and futures trading really that different

Futures trading can be used for two main purposes; Speculation and Hedging While most retail futures traders get involved in futures trading for the purpose of leveraged speculation, it cannot be forgotten that the true purpose of futures contracts is for the purpose of hedging