Options trading has emerged as one of the most popular instruments in the global financial markets. Known for their flexibility and versatility, options provide a simple and effective way for traders to access stocks, indices, currencies and commodities.
With that in mind, it’s time to explore some interesting facts about options and options trading that might surprise you. Like any other financial instrument, trading options requires patience, deliberation and the combination of sound and accurate technical and fundamental analysis.
Having said that, below are five interesting facts about options trading.
1. Options have been around longer than you think.
If you’ve been trading the financial markets for any length of time, you have probably noticed a gradual uptake in options trading. At the very least, options-related chatter has certainly increased in recent years. While this gives the impression that options are a new kind of investment vehicle, nothing can be further from the truth. Options trading started all the way back in 1973. By 1999, the total volume of options trading had reached 507 million. By 2007, that number had surged to more than 3 billion.
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