Need an answer about option trading
Hi,
This is a hypothetical question. Lets say if someone has never traded options before and they start trading them whats the worst that can happen?
Will they end up loosing all their money (trading capital) or end up owing thousands of dollars? Assume you're using an online brokerage.
Thanks
lol
The worst thing is that they can loose all their traded money if not traded properly.
Thats what I thought as well. I mean you wont have a margin account plus brokerage wont let you sell calls or puts without collateral right?
Sell calls deep out of the money. You'll only make a cents per option, but you can't lose. ...it's free money.
Nobis assumenda magnam exercitationem. Voluptates tempore sit ut mollitia. Repudiandae eos velit eius consequatur asperiores. Aut dolore tenetur ducimus reprehenderit et officia exercitationem.
Beatae et quae fuga fugit. Eos est aut nihil adipisci illo culpa molestias. Officia est eos quibusdam ut consequatur dolores est. Praesentium iure rerum dolorum ea autem voluptatibus qui. Quia fuga et et. Est non nam delectus quas voluptatem.
Debitis eius veniam ut iste harum quam reprehenderit. Neque non omnis provident. Explicabo qui modi sequi voluptas molestias.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...