Are you planning on trading options? Here’s what traders and investors should know about the difference between the bid versus the ask spread, order types, and slippage.
At 54.5% of global market capitalization, the U.S. stock market is by far the world’s largest. Learn about the exchanges and order-fill platforms that make up this trading ecosystem.
Prices tend to get drawn toward the option strike with the highest open interest. That means those who are long the option may experience the most pain if the stock settles at the strike price at expiration.
Options are often used as a hedge on another position. That means there’s more to an options trade than one winner and one loser.
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Content intended for educational/informational purposes only. Not investment advice, or a recommendation of any security, strategy, or account type.
Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.
Market volatility, volume, and system availability may delay account access and trade executions.
Past performance of a security or strategy does not guarantee future results or success.
Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.
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