What Does stock options Mean?

What Does stock options Mean?

Blog Article

This process, named leverage, gives you the opportunity to take on far more danger and get much more publicity for potential gains with a lot less cash upfront. But leverage shouldn't be taken lightly, as that added hazard implies there is a greater opportunity to lose the more info money you've got invested. You also have to fulfill particular necessities to margin trade.

In case the stock drops beneath the strike rate, your selection is in the money and you will take advantage of it. Or else, you would forfeit the top quality and wander away.