Tag Archive | "potential"

Option Trading Strategies

Thursday, July 9, 2009

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Option Trading Strategies

Generally, an Options Trading Strategy involves the simultaneous purchase and/or sale of different option contracts, also known as an Option Combination. I say generally because there are such a wide variety of option strategies that use multiple legs as their structure, however, even a one legged Long Call Option can be viewed as an option [...]

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Margin Trading: Borrowing Money To Pay for Stocks

Wednesday, July 8, 2009

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Margin Trading: Borrowing Money To Pay for Stocks

Margin trading is borrowing money from your broker to buy a stock and using your investment as collateral. Investors generally use margin to increase their purchasing power so that they can own more stock without fully paying for it. But margin exposes investors to the potential for higher losses. Here’s what you need to know [...]

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