Learn about Options

Options are not an instrument for beginners with no knowledge of the financial markets because of the risks involved are more complex than shares or managed funds. If your knowledge of investing is basic, it’s best to read the Shares guide first, as there are many overlapping concepts that need to be understood to progress to investing in Options.

Options allow you to tweak your investments and can do a number of things, such as reduce the risk, reduce the initial money you put in, limiting the trading range – depending on the type of option you hold. Investors usually borrow money to trade options and therefore increasing the risk of adverse movements in the underlying instrument. The guide will provide some of the reasons many people invest in options, and will provide resources for investors who want further information.

Managed Fund articles

• Introduction to Options