Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Why Trade Options? and other Investing topics.

Why trade options?

Limited dollar risk and limited dollar exposure

As an option buyer, you benefit from being able to control the movement in a stock for just a fraction of the cost of purchasing that stock. Plus, you can never lose more than this modest dollar amount. As a result, you can keep the bulk of your investment dollars in the safety of cash where it is immune to the wild and often scary swings in the market.

Comments

Nobody has commented on this tip yet. Be the first.

Ask a Question

Not finding the advice and tips you need on this Investing Tip Site? Request a Tip Now!

Guru Spotlight

Lynda Moultry

Ever wonder how you could make your life better and more fun? So have tens of millions of fans who have turned to LifeTips for answers over the past decade. We keep the tips, advice, books, podcasts and writing services flowing, so you can keep your life and business growing in the right direction. Upward!