HEDGING
Hedging is an investment to reduce the risk of adverse price movements in an asset.
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Options trading involves buying and selling options contracts, which give traders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a set timeframe. In trading, options are used for speculation, hedging, and income generation. Traders use strategies like calls, puts, straddles, and spreads to profit from market volatility or to manage risk. Options trading requires a strong understanding of time decay, volatility, and strike prices, making it suitable for both short-term and long-term strategies.