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Speculation

Added on:8/2/2008 7:44:37 PM
In Finance and Investment Tips
 Rated by 1 users

Speculation is a common use of equity options, and is probably why many of those unfamiliar with options typically associate them with risk. Option speculators are attracted by the large potential returns linked with buying options. In short, buying options allows one to achieve leverage, make money in up and down market conditions, and control a number of shares with a small capital commitment.


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