Option accounts
An option account gives you all the capabilities of a margin account (which in turn also give you the capabilities of a cash account) plus the ability to trade options on stocks and stock indexes. To upgrade your margin account to an options account, the broker usually ask you to sign a statement that you are knowledgeable about options and familiar with the risk associated with them.
Options can be very effective addition to a stock investor’s array of wealth building investment tools.
I will discuss with Stock Option trading in the future article.
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