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This is why I trade options. Leverage. When I look at a stock that I feel (no guarantees, of course) is about to have a run up, options are the way to get the most leverage. I saw a potential 50% increase in this stock, and the typical investor might consider buying some on margin. 100 shares, $15000 cost, $7500 out of pocket. Stock rises to $210, a $6000 ...


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Well firstly I've know many professional investors (hedge fund portfolio managers) who traded forex, futures and options who knew little about stocks. Some benefits of trading futures, forex and options are that they can be very liquid (but not always), and give easy access to leverage. Getting leverage for stock trading requires loans of some kind and that ...


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Many exchanges create contracts in the hope that one day someone might trade them. Until someone does, there are no prices. All the palm oil futures trading happens in Malaysia, and there is no compelling reason (so far) for anyone to trade it on the CME instead. Remember that, even if the monetary terms might be identical, the contracts on the two ...


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When you buy or sell anything, what you are actually always doing is finding someone, giving one thing, and receiving from them something else OR you enter into an agreement with that person. Without getting into details, while you do indeed have to find someone else to 'sell you a futures contract' (there has to be someone connected to the exchange that is ...


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