I find that many people who have a smaller account size are attracted to options because of leverage, so they assume that they can trade larger or use that leverage to make more and accelerate the growth process to their account.
There are some advantages when it comes to options, for example, trading options can give you advantages like time decay, meaning you can capitalize as options decay by selling those options.
You can create spread strategies that you can’t do with stocks, so you’re allowed to create a lot of different variations that you just can’t do when you’re just trading stocks directionally, and finally of course leverage.
#tradingoptions #tradingstocks #stockmarket #financialinvesting #stocktrading #optionstrading
Posted at: https://tradersfly.com/blog/better-to-trade-options-or-stocks-what-is-your-preference/
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