Options Trading
What are the advantages and risks of options?
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What are the advantages and risks of options?

1) Options are cost efficient with great leveraging power. An investor can obtain an option position similar to a stock position without actually trading the stocks themselves, but with much more volatility risk. 

2) Options are a popular way to hedge your positions.  However, when not properly understood by investors they may pose a high risk of loss. 

3) Options have the potential to deliver higher percentage returns and losses. 

4) Options provide a strategic alternative to investing in equity. There are many ways to use options to recreate synthetic positions; however, there are many risks associated with trading options and we suggest to do a lot of research before trading options.

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