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Diversification Using Options

Discussion in 'Education, Tutorials & Courses' started by FXStreet_Team, Oct 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    One of the main features of trading with options is that you can get a large amount of leverage. For a very small investment, you can own positions in some very high-priced stocks. Since each position takes only a small amount of money, an investor who has (or cares to risk) only a small amount of risk capital can diversify among many such positions. Diversifying risks is always safer than concentrating them. It is the nature of markets to boom and then bust. If you have all your money in

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