The world of options trading offers retail investors the opportunity to utilize financial assets in a way that varies from the traditional sense of investing.
Within options trading there is no need to move assets between one party and another with the hope of the held asset gaining value over time, regardless of timeframe.
Instead, investors are able to leverage the natural fluctuations of price, or volatility as it is known in the world of investing, to earn gains on assets that they themselves do not physically hold in any sense.
This is called options trading.
The ability to investment a given amount on a set number of assets and their valuation movement, either in an upwards trend or downwards.
So if this is options trading, what is Peer options trading, or P2P options trading as it is known more commonly?
P2P Options Trading
So, we know what options trading is but what about peer trading?
Well, as the name suggests, Peer Options Trading, or P2P options trading as this article will refer to it from this point forward, involves two investors making the necessary agreements, in terms of price and gains, amongst themselves, usually with the help of a platform to facilitate a more simple transaction among both of them.
You may ask yourself, well, why is this preferable to the alternative?
To answer that question, let’s take a look at options trading within a traditional setting.
Traditionally, in order for a retail investor to make an options trade they would need to enlist the assistance of a broker or brokerage firm to facilitate the trade.
This means that in order to access the world of options trading one must go through a gatekeeper. Usually, these brokers charge fees, percentage based charges, and other amounts simply to make the trade.
This equates to a less than ideal earning situation that is essentially a pay to play transaction.
With P2P, investors are able to trade directly with one another on a platform and cut out the middlemen entirely. That means more of those returns end up in the pockets of the investor and not the brokers.
This is bad news for brokers but good news for investors.
So, what happens if you’re not familiar with options trading though? Would it not be better to have a broker guide you through the process?
To answer that question, maybe, that is unless you have AI guiding your hand.
Platforms such as Level01 allow traders the opportunity to leverage AI to ensure that every trade is fair and in line with their needs. This ensures a completely fair environment for all traders and an easier pathway to the world of options trading.
So, that P2P Options trading, the next question is if you’re ready to start earning your own gains in this world.
Ready to make your own trades?
Looking for a platform that allows you to leverage AI to ensure fair trades and equal win opportunities?
Download the Level01 App today and start trading!