WHAT DOES POSITIONING MEAN?

LEARN HOW TO POSITION YOURSELF TACTICALLY WITH OPTIONS

Positioning can involve putting on trades to profit from, hedge against, or take advantage of time-specific events. Options and futures by their nature are time-specific because, unlike the underlying position from which their value is derived (eg the underlying stock, commodity or currency), they expire at a given point in the future.

Therefore if you want to position yourself to protect your portfolio or just trade around a specific event such as a new trade agreement, a change in government policy, or some soon-to-be-published financial numbers, then you might like to consider some of the options strategies listed here. Examples could include selling puts against underlying cash positions to enhance income; using straddles and strangles as part of your equity trading strategy; and buying puts/calls to acquire specific, time sensitive exposure with known downside risk.

Ways to Trade Options

Even if you do not own the underlying asset, options can be used to speculate on the market, provided that you have enough experience and knowledge to do this, alongside a margin for protection.

At OptionsDesk we have created a wide array of articles in the Resources Hub that can be used to learn more about Options, how to trade them and how they can be beneficial to you. We strongly recommend checking out our Introduction to Options section if you are just starting out, this will give you an understanding of how options work and what style of Options trading suits you.

HOW TO BUY OPTIONS

OPTIONSDESK HOW-TO GUIDES

Not sure where to start when buying options? Our comprehensive guide will take you through the where, what and how.

Important information: Derivative products are considerably higher risk and more complex than more conventional investments, come with a high risk of losing money rapidly due to leverage and are not, therefore, suitable for everyone. Our website offers information about trading in derivative products, but not personal advice. If you’re not sure whether trading in derivative products is right for you, you should contact an independent financial adviser. For more information, please read our Important Derivative Product Trading Notes.

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