Why have commodity options on futures become such an increasingly
options make it possible to realize a potentially substantial profit, in a short period of time, with a limited-risk investment.
Under no circumstance, can the loss exceed the cost of purchasing the option including transaction costs. Other advantages
- The leverage inherent in options.
- The liquidity provided by established competitive option markets.
flexibility to respond rapidly to market opportunities.
- The ability to follow
the value of your investment on a day-to-day basis.
- They staying power to weather
temporary price setbacks without incurring additional risk or cost.
from the margin calls that many other leveraged investments are subject to.
federal and industry regulation to which options trading is subject.
- The ability
to buy and sell quickly due to market liquidity.
- There is no guarantee that
any of these advantages will result in profits.