What are the capital options?

In order to understand the capital options, you must first have some knowledge of your own capital. The capital itself is the value of the asset after deducting any funds owed to their purchase. The actual capital of the investor's joint portfolio is based on the value of the shares owned by any capital borrowed to purchase these actions. When dealing with real estate, the owner can determine his own capital of his property by deducting his mortgage balance from the estimated value of the assets. Investors can use the value of their own capital as a loan collateral or as a derivative that can be traded on an open market. There are two types of capital options: call options and option options. Call options to grant the buyer the right to monitor with the purchase of security at a given time based on the established Strike Price. Those who buy call options hope that the security value will increase to the time they follow their purchase. If a contract of call is concluded, it maye Buyer decide that with the purchase at the specified time or logs off, but the seller is obliged to honor the transaction no matter.

Put Options are contracts between the instrument owners, or with the writer and the investor, or the holder who believes that the value of this tool will drop over the time of the exercise period. PUT holder pays the strike price plus premium value for safety. If the value of this security decreases during the exercise period, it can then sell the capital option to the writer PUT for the original strike.

The writer Put hopes that his asset will increase to profit from the TPREMIUM SALE. The PUT holder wants the value of this asset to fall below the strike price to force the writer to buy the possibility of his own capital at the strike price. Speculators often use this practice and the level of risk is relatively high. The most common are optionsOwn capital, where security owner hopes to generate a rapid income from the premium price charged for the sale of the option.