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How options trading works: The investing strategy used by Wall Street

CNBCCharlotte Morabito

How options trading works: The investing strategy used by Wall Street

Experienced investors leverage a unique financial tool to protect their assets: options. An options contract is a financial tool that allows an investor to pay a fixed sum of money to lock in a set price to either buy or sell an asset at a future date. But when new investors wade into options trading, they tend not to employ the same strategies ...

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