Been trading for a few months but mostly call options. I keep seeing put options mentioned everywhere but I’m not sure how they work.
Do you make money when the price goes down? How is that different from betting against the trend?
I feel like I’m missing something basic here.
Puts are the opposite of calls. I made $340 last week onEURUSD puts when it dropped 80 pips.
Put options make money when prices drop below your strike by expiration.
Learned this the hard way last year. Kept buying calls on a stock that was tanking and lost three straight trades before I finally switched to puts.
With puts, you win if the asset closes below your strike price. You’re not betting against the trend - you’re just trading opposite to calls.
Put options let you profit when markets fall. You buy them expecting the price to drop below a certain level before they expire.
It’s not betting against trends - just trading the other direction. Took time to get comfortable with puts, but they’re valuable when an asset starts showing weakness.
Binary puts profit when the asset price falls below your entry point by expiration. Full stake loss occurs if incorrect. Profit rates vary by broker and asset volatility.
Puts are like insurance - they pay when prices drop. You’re buying the right to sell at a set price, so when the market falls below that, your put gets more valuable.
What’s different from shorting? Your risk is capped. You can only lose what you paid for the put, but profits keep growing as prices fall. I buy puts when I spot weakness in charts or expect big moves.
Start small until you get how they work. Puts are solid tools for protection and making money when markets go south.