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26956158 No.26956158 [Reply] [Original]

>have to apply to be able to trade options because it's "high risk"

How the fuck would a call option be high risk when I can only lose my initial option purchase but have unlimited potential for gains? If the stock tanks I don't have to exercise the fucking option. It's only high risk if you're shorting the stock.

Meanwhile, if I spend a fuckton more money to actually buy a stock outright, I can lose a lot more money.

>> No.26956293

>>26956158
>Meanwhile, if I spend a fuckton more money to actually buy a stock outright, I can lose a lot more money.
This is something that should be explained to newfags

>> No.26956604
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26956604

All of this is to protect you.
At FINRA we've got every set up and in place in order to keep you financially secure.

So when you're getting absolutely raped by institutions or you make an accidental trade and you're under PDT. You cannot sell. Well, unless you let us hold a small $25,000. That is what truly removes your risk, more money.

>> No.26956919
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26956919

>>26956604
Based corpos

>> No.26956955

>>26956158
If you don’t sell by the end of day on the expiration date, the options will auto exercise, meaning you actually have to buy the stocks. This could cost more money than you have.

>> No.26957070

>>26956955
Won't that be covered by your margin limit though?

>> No.26957377

>>26956158
Obviously it is much high risk than buying a stock if you invest the same amount. A stock isn't going to go to literally zero but your options have a pretty good chance of expiring as completely worthless.

>> No.26957734
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26957734

>>26956158
>>26957070
Wow you guys have no idea what the fuck you’re doing
>>26956919
Also, fuck corpos

>> No.26958010

>>26957070
Do you even have a margin account? Are you over 18 years old?

>> No.26958411

>>26957734
they don't treat margin like a simple line of credit?
just as an option multiplier?

>> No.26958744

>>26958010
of course, i applied for a signature loan to ride the GME moon

>> No.26958947
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26958947

>>26958744
>tfw I used a personal loan to buy ETH at $150 circa March. Crypto isn't a security, it's an asset.

>> No.26959374

>>26956158
oy vey you know why

>>26956955
no they dont faggot. the broker sell sthem automatically if you dont exercise by expiration or have the money to


>>26957377
no


the real reason you fucking goys, is they dont want you playing with options because retards end up losing their money faster. and the broker MAKES money by having more of your money in their account. so its in their interest to keep your account balance higher, so they can loan out your shekels to other people for usury. if you bankrupt yourself after the irst week with options, they dont make any money from you.


there are different factions at play. brokers have their own interests aside from megacorps

>> No.26959699

>>26956293
Please do.

>> No.26959734

>>26956158
retards can take their account to zero, the premium on options can't just be ignored