Let us see the main beauty of option in the stock market which make it very valuable investment asset. Something that make share market very unique compare to other investment. Understanding this benefit of option will make you understand a lot more of other derivative product available in the market.
Care have to be taken for those who wants to borrow money to kick start their investing journey. When people wants to borrowing money, often they only see the bright side where everything is going as planned and the profit will accelerate. But what happen if the trade is not going to the direction we want ? You may not only lose all of your money, but on top of that you still need to pay additional amount plus also the interest.
In printing/word processor, you can see the similar resemblances in understanding “margin”. Margin is a vacant space left as a ‘border’ between the edge of the paper and the content. That is also somehow similar to “margin” in trading, it’s a space between the end of your account and the real profit.
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