Trading options is not for the faint of heart. It requires a complete understanding of what effects the values of stock. Options Trading Strategies are varied and before taking one on a risk assessment of the investors situation is almost mandatory before one enters this arena. You must know that a projection of rises and falls of values are being made by the investor as to the future value of an investment. The variables are many and should be understood for a proper risk assessment to be made. Basically you are financing a purchase of an investment by using an arrangement with an investment company whose money is being used to pay for a purchase. An investment company does this with many investors so they are always extended in the marketplace.
The rudiments of options are not easy to grasp, and for that reason trying some paper trading makes sense. This helps you to try out basic strategies, master terminology, and learn how the system works. However, paper trading is safe because no money is actually at risk, so its value is limited to the concept of options trading and not to its real-world application. Click this link to finish reading Basic Long Option Strategies.
When a major event takes place an investment company may feel that the investor block of business presents too great a risk, they may make a call which means they want you to settle your account immediately. Hence the risk. Be aware of the downside of that happening because it usually occurs.