This week is all about options.

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What You Need to Know about Gold and Silver - Week 12

 

Advantages Disadvantages
  • Options are highly liquid
  • Options are purchased or sold on commodity exchanges
  • Leverage (can be a con)
  • Unlimited profit potential and limited loss potential only when buying them
  • Unlimited loss potential and limited profit potential when selling options
  • Options are a deteriorating asset
  • Counter party risk