Investors seeking to magnify their market exposure and potential gains often turn to options trading—a versatile investment tool that provides the opportunity to leverage positions while managing risk. Options are contracts that grant the owner the right, though not the obligation, to buy or sell an underlying asset at a set price on or before a certain date. Here's how savvy investors use options to leverage their investments, along with some of the risks and benefits involved.
Understanding Options for Leverage
Options trading enables investors to control a larger amount of...
Investors seeking to magnify their market exposure and potential gains often turn to options trading—a versatile investment tool that provides the opportunity to leverage...