This is a contract between two investors. It states that one of them has provided the other the right to buy or sell a particular asset at a specified time period at a pre-determined price. There are two types of options: "Call option" - a contract for the purchase, which gives the holder the right to buy an underlying asset. "Put option" is a contract for sale. Its owner has the right to sell the underlying asset. Find out more by reading “Getting started in options” by Michael Thomsett.
Trading in financial markets involves substantial risks, including complete possible loss of investment capital. This activity is not suitable for all investors. High leverage increases the risk (Risk Disclosure).