Articles Posted in Option Trading

Market Volatility – Margin Accounts – Margin Calls, Margin Abuse and Account Deficits Especially Relating to Option Transactions – Boca Raton, Florida Margin Deficit FINRA Arbitration Attorney:

There is a substantial difference between the risks and rewards arising from the use of a margin account as opposed to a cash account. This is especially true when one is exposed to the type of volatility that the markets have recently experienced. It is not uncommon in these types of volatile and fast moving markets, especially when one is on the wrong side of a option position, that all of the account’s equity is lost but that an account deficit might result. In such a situation, it is important to immediately consult with an experienced attorney in such matters. This is especially true if your broker is demanding that the client payoff a deficit in the account.

For the notice investor, the below discussion generally describes the difference between a cash and margin account.

Risks Associated With Option Trading – Boca Raton, Florida Investment Abuse FINRA Arbitration and Litigation Attorney

What are some of the risks associated with trading options?

Options like other securities carry no guarantees, and investors should be aware that it is possible to lose all of your initial investment, and sometimes more. For example:

Boca Raton and West Palm Beach, Florida Option Trading Abuse FINRA Arbitration and Litigation Attorney:

Options Trading:

Market Participants – There are generally four types of market participants in options trading: (1) buyer of calls; (2) sellers of calls; (3) buyers of puts; and (4) sellers of puts.

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