In technical terms, leverage is the ratio between the amount of money you have in your account and the total size of positions the broker allows you to take. You’re using leverage every time you enter ...
To understand leverage in options trading, we need to look at how options contracts work briefly. An option gives the owner the right (but not the obligation) to buy or sell an asset at a specified ...
Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee ...