Quote:
Originally Posted by Hammock Parties
No - what is it, you set a price you'll sell a stock for 3 months in the future or something? Hope some rube comes along?
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No, you purchase the option to buy a stock in the future at a set price. Much more volatile than straight stock purchases, higher potential profit but more likely to lose money. Interestingly, you need less money to invest which lowers your total risk in the worst case scenario. It seems like something you’d be interested in based on your investment strategy.
https://us.etrade.com/knowledge/libr...ding-beginners