Everything about stock options

Everything about stock options

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This process, identified as leverage, offers you a chance to take on additional threat and attain a lot more publicity for possible gains with a lot less cash upfront. But leverage really should not be taken lightly, as that added risk signifies there is a larger opportunity to lose the money you've click here got invested. You also have to fulfill specific necessities to margin trade.

If your stock drops under the strike price, your solution is in the money and you will take advantage of it. Or else, you would forfeit the top quality and wander away.