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

Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options and Option Spread Risk Disclosure before trading options.

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