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    The document discusses advanced trading options and their pros and cons. It notes that options can be cheaper than equivalent stock shares, provide leverage, and may be less risky than equities. However, options are also subject to taxes, commissions, and uncertainty in gains. Short selling is described as allowing potential large returns with little money upfront but also poses limitless loss potential and can exacerbate normal stock dips.

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    The document discusses advanced trading options and their pros and cons. It notes that options can be cheaper than equivalent stock shares, provide leverage, and may be less risky than equities. However, options are also subject to taxes, commissions, and uncertainty in gains. Short selling is described as allowing potential large returns with little money upfront but also poses limitless loss potential and can exacerbate normal stock dips.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    25 views3 pages

    Advanced Trading Options

    Uploaded by

    api-485342612
    The document discusses advanced trading options and their pros and cons. It notes that options can be cheaper than equivalent stock shares, provide leverage, and may be less risky than equities. However, options are also subject to taxes, commissions, and uncertainty in gains. Short selling is described as allowing potential large returns with little money upfront but also poses limitless loss potential and can exacerbate normal stock dips.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 3

    Advanced

    Trading
    Options
    Andrea Barron
    Options Cons
    Pros

    ● Cheaper to purchase than ● Taxes


    an equivalent number of ● Commissions
    shares ● Uncertainty of gains
    ● Provide leverage
    Why use them?

    - They may provide increased cost


    efficiency, and they may be less risky
    than equities.
    Pros
    Short Selling Cons
    ● Allow you to potentially ● Loss is potentially limitless
    reap a large return without ● It can take a normal stock
    putting much money up dip and turn it into a crash
    front
    ● Can hedge your investment

    Why use this?


    - Short selling has a high risk and reward ratio.

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