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If i buy a call option on 10,000 shares, $10 each (actual worth $100,000) on leverage of 200 times so I only pay $500, where exactly is the rest of the $99,500 coming from to cover my position?
>The broker
Where is my broker getting that the extra $99,500 from?
>The Bank
Where is the Bank getting the extra $99,500 from?
>The Government
Where is the government getting that extra $99,500 from?
>Aliens
Where are aliens getting that extra $99,500 from?
>>
>>1075459
It's coming out of the stock you invested in, they hand you the spare shares you need to make up what you're expecting to make and then the leverage is basically the hedging they expect you to use within your portfolio for the taxation benefits and divideds the plan to hand out, I'd there's no dividends then usually the statical moving averages to determine where the pivot point is on your CHESS system. If you find your equity isn't marginal to their preferred technical indicator then the money comes through the lowest placement of technical key statistics
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