There is plenty of money in the stock market. However, not everyone can get money from there. Some people can make a lot of the scholarship, but some have lost a lot of money there. It is very doubtful. Sometimes it’s time, money, but the loss you after a few days, you can make a profit and is sometimes reversed. So how should we do to get money from the purse? Usually, there are two ways to get money on the stock market, investing and trading. The difference between trade and investment is trading involves buying and selling stocks, futures or options in a short time, while investment is buying stocks, futures and options and hold for a long time, usually a year or more before selling.
What is the difference between the share, future and option? What we know is that this option is much cheaper than the action and the future is generally ten times lower than the share price. So if you have an amount of money you need to purchase 100 units of shares, you can use this money to buy 1000 units option. And the return on investment is almost the same between the stock and options. Therefore, you will earn about ten times more if you buy an option rather than share or future. However, the downside is that if you lose on this trade, you lose almost tenfold also. When we trade option, the amount of money that we can take advantage and losing is almost as if the share of trade than we do. However, we need a lot of money to buy share, compared to buy option. This causes the percentage of profits and losses for the purchase of the option is much higher than the share. The example is like when you buy $ 10 for a unit share and $ 1 for a unit option. When the price falls to $ 0.10 share, lower percent for the purchase of shares is 1%, but for the purchase option, the loss is 10% per cent. Therefore, the percentage of profits and losses for the purchase of the option is huge compared to the purchase of shares, although share prices fluctuate in a small amount.
