Part 1 Candle Stick Patterns

What Is an Option?

An option is a contract between a buyer and a seller.

The buyer pays a premium to purchase the right.

The seller receives the premium and takes on the obligation.

Every option contract has:

Strike Price – the predetermined price for buying or selling the asset

Expiry Date – the date on which the option contract ends

Premium – the cost of the option

Lot Size – fixed quantity of the underlying asset

Understanding these fundamentals is crucial before diving into live trading.