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For example, that you have an option contract that allows you to buy gold at $1300 for the next week.
If gold hits $1325, you can exercise your option and buy it for $1300, $25 less than the current market price.
If gold stays below $1275, then there’s no obligation to buy it for $1300. Though by not trading, you’ll lose the premium you paid for the option.
Disclaimer: To read more about the disclaimer Click here
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Losses can exceed your deposits
Ready to Invest?
Explore a new trading experience with
Century Trader App
Losses can exceed your deposits
Regulated by SCA
Century Financial Consultancy LLC
Reach us:
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Dubai
6th Floor, Emaar Square Building 4,
Downtown, Dubai, P.O. Box 65777,
Dubai, United Arab Emirates -
Abu Dhabi
27th Floor, Office 2701,
Shining Towers, Abu Dhabi, UAE - +971 (4) 356 2800
- info@century.ae
Disclaimer: Trading in financial products carries substantial risk. Leveraged over-the-counter (OTC) derivatives, such as Contracts for Difference (CFDs) and spot forex, may result in losses exceeding initial deposits and may not be suitable for all investors. These complex instruments do not confer ownership of the underlying assets. Investors should carefully consider their investment objectives and risk appetite, and seek independent professional advice if necessary.
Century Financial Consultancy LLC (CFC) is licensed and regulated by the Securities and Commodities Authority (SCA) of the UAE under license numbers 20200000028 and 301044 to carry out the activities of Trading Broker in international markets, Trading Broker of OTC derivatives and currencies in the spot market, Introduction, Financial Consultations, and Promotion. CFC is incorporated under UAE law, registered with the Dubai Economic Department (No. 768189), with its office at 601, Level 6, Building No. 4, Emaar Square, Downtown Dubai, UAE, PO Box 65777.
The content on this website is provided solely for informational and educational purposes and does not constitute an offer, recommendation, or solicitation to buy or sell any securities or financial products.
Products and services offered by CFC are not intended for use in any jurisdiction where such use or distribution would breach local laws or regulatory requirements.
