There are many strategies to trade options. This focuses mainly on its use as leverage. One option contract represents 100 shares, and its cost is much less than actual shares. That should give you an idea of its leverage.
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Compared to futures, options allow you to do leveraged investing based solely on the buying power of your equities without needing any cash or loan. There are at least 2 main ways to do this.
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Compared to futures, options allow you to do leveraged investing based solely on the buying power of your equities without needing any cash or loan. There are at least 2 ways to do this: