This process, termed leverage, offers you a chance to take on much more hazard and obtain extra exposure for probable gains with much less dollars upfront. But leverage should not be taken flippantly, as that additional chance means you do have a greater opportunity to lose the money you've got invested. You also have to fulfill particular demands to margin trade.

An extended expiration is additionally useful since the option can keep time value, whether or not the stock trades below 안전놀이터 the strike price tag. An options time worth decays as expiration strategies, and options consumers dont want to view their obtained options drop in value, perhaps expiring worthless if the stock finishes under the strike rate.