Collateral to ensure you can fulfill the obligation if assigned.
Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you.
In a traditional stock trade, Regulation T typically allows you to borrow up to 50% of the purchase price. Options differ significantly:
Collateral to ensure you can fulfill the obligation if assigned.
Leverage can amplify gains, but it can also cause you to lose more than your initial investment if the market moves against you. buying options on margin
In a traditional stock trade, Regulation T typically allows you to borrow up to 50% of the purchase price. Options differ significantly: Collateral to ensure you can fulfill the obligation