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What is a put option? Understanding how to trade them

1 month ago   |   By Business Insider

Those who buy put option contracts are essentially betting that the asset's price will fall.
Witthaya Prasongsin/Getty
Put options are contracts that allow investors to sell a specific number of securities at a predetermined price within a specified timeframe.
They are bought when a trader expects the option's underlying asset to fall.
In most cases, brokerage firms require that investors apply and be approved to buy options.
Visit Insider's Investing Reference library for more stories .
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