Learn how stock and options trading works along with the important basic definitions. Explore the professional content and get ready to start trading! Learn everything about technical analysis, options, bonds, and fundamental analysis!

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Definition of options

Risk graph

The Option Greeks

Option orders

The risk of options

Option Volume and Open Interest

Put/Call ratio

The definition of volatility

Volatility is the measurement of the fluctuations in market prices. When the market price of the underlying increases/falls by 15 or 20 bps daily, the market is more volatile than in the case of 3 or 5 bps fluctuations. When the volatility of the underlying is 27%, then an underlying with the face value of $7.85 is expected to move between 7.85 ± 2.12 (2.12 = 7.85 x 0.27) this year. The probability of the price staying within this range is 68%. When volatility increases, share prices decrease. The following graph shows the historical volatility, the implied volatility, and the market price of the IBM shares.

Volatility and share price of an IBM share

Volatility and share price of an IBM share

Calculating volatility

Implied volatility

Volatility smile

Online Trading Course - for Beginners!

  • Specially made for beginners
  • From Forex to the Option trading
  • Immediate techniques

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Trading Guides


25 indicators. Find the indicators matching Your strategy and learn their trading signals through examples!

Candlestick patterns

88 candlestick patterns. Increase Your profit by recognising candlestick patterns and analysing the market with their help.

Chart patterns

31 chart patterns. Recognise triangles and breakouts, calculate the target prices defined by them.

Option strategies

49 option strategies. Apply the strategies that best suit your purposes and learn how to calculate their potential profit and risk through examples.

The modules of trading course

Everything You need to know about stock and option trading.

Download the trading training materials for beginners here: