Buy Gold Options

Apr 28, 2013

Online trading broker AvaTrade now offers gold call and put options on gold, silver, and all the forex.

Options are advanced trading tools where you purchase the right to buy an instrument at a pre-set price, but are not obligated to buy. You are locked in arthritis “strike price” so these can be extremely useful products, and if used correctly, also extremely profitable.

1) Options are used by price speculators to profit during price changes as the markets move in the direction that they speculated.

2) Options are used by hedges to protect or “insure” other investments such as other trades, or physical inventories. For example if you own raw gold bullion, you cannot sell it quickly as the market price falls and re-buy when the market bottoms out. So you just buy a “call option” so you are protected from falling gold prices.

3) Options are used as a trading strategy. The options have a strike price and an “expiration date”. After that date, the option is either automatically executed if it is profiting, or “in the money”, or the option expires worthless. However before the option expires, it’s “intrinsic value” continues to change. The trader can always sell this option for its intrinsic value, just like any other investment product.

AvaTrade is the first and best broker to offer full options trading on gold and silver for the retail investors using a powerful processional-grade trading platform.