Learn to trade options
By Simon Gleadall, CEO of Volcube.
Options can be amongst the most useful and exciting financial instruments to trade. Options can be used as part of an investment portfolio for income-enhancement, risk minimisation, speculation or hedging. Options can be cost-effective tools that almost any trader or investor could benefit from understanding and using. But, options can be risky. In fact the risks from trading options can be explosively large. Now that also means the opportunities can also be explosively large. Nevertheless, the fact that options can be such volatile instruments means that before anyone even thinks of trading them for real, it is essential that they understand exactly what risks option trading involves.
Traditionally, the way to learn to trade options was by buying a book about options. Now learning to do anything simply by reading a book is rarely the best way forward. Whilst learning about option ‘theory’ and about the definitions of call and put options from a text book is undoubtedly valuable, this knowledge will only ever be a poor substitute for practical experience. Trading is a physical act. Trading means doing something. And the best way to learn to do something, is by doing it, rather than reading about doing it.
All well and good but learning to trade options by actually trading options could be an expensive way to learn! Given that we have just said that options are inherently high-risk financial instruments, learning by making mistakes (which in general is a great way to learn) is NOT a choice many would-be option traders are happy to make. This is as true for the aspiring option trader at home as it is for professional junior traders in financial firms and banks.
This is where Volcube can help. Volcube is an options market simulator combined with fantastic option training tools. You can learn to trade options by practising on the options market simulator and you won’t lose a penny no matter how many mistakes you make! What’s more, Volcube includes the smart Volcube Market Mentor training technology which educates you about option trading and risk management as you play on the Volcube options market simulator!
Volcube is much more than a paper-trading account offered by some option brokers or exchanges because Volcube does so much more to actually teach you. Each session you trade through gives you a whole range of metrics so you can measure your own performance and compare to other Volcube option traders around the world.
Volcube is trusted by some of the world’s leading option trading firms to train their new hires and junior traders how to trade options and volatility the right way. If you want to learn to trade options, why not use the technology used by the pros?
Practise trading on the Volcube Options Simulator and become a qualified Volcube Options Trader! Click here to find out more.
Volcube is an options education technology company, used by option traders around the world to practise and learn option trading techniques.
These articles are for informational purposes only. They should not be regarded as an offer to sell or as a solicitation or an offer to buy any financial or derivative products.