5 Essential Elements For stock options

5 Essential Elements For stock options

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This process, named leverage, gives you the opportunity to take on additional danger and attain much more publicity for possible gains with fewer funds upfront. But leverage really should not be taken click here lightly, as that more danger suggests you have a increased opportunity to drop The cash you've invested. In addition, you will have to satisfy selected requirements to margin trade.

Secondly, keep in mind the options expiration day, most frequently 10 several years from the option grant day.