Options trading overview

Learn more about the basics of trading options at Questrade

Options trading has a perception that it’s only reserved for expert traders, but in reality, can be an effective tool for many investors of all experience levels.

Let’s dive into the world of options so we can understand how these complex investments work, and how to trade them using the Questrade Edge platforms.

What are options?

Options are known as "derivative investments." A derivative is something that gets (derives) its value from another asset, like a stock or ETF (something called the underlying.)

Options are contracts with 3 components:

1. The option or obligation to buy or sell an investment in the future

2. The specific price called the strike price, that the investment will be bought or sold at

3. An expiration date after which the contract becomes worthless

To learn more about the basics of how Options work, please check out our comprehensive Introduction to options trading article.

Learn more about how to trade Options using the Questrade Edge platform of your choice in the related lessons below.