How Much Money is Needed to Buy Option Contracts? (3 step process)

Thinking of getting into buying and selling option contracts but not sure how much money is needed? This is the video for you! In order to help you figure out how much money is needed, we need to use this simple three step process to determine how much an option contract cost. Once we have this number, you’ll be in the perfect position to judge just how much money you need. As a small spoiler in regards to “how much do I need?” - not much at all! This is one of the great advantages of options trading. You do not need a massive account in order to get involved and begin trading them. In fact, you can have a very small trading account and still be able to buy and sell them! Options are a great trading vehicle within the world of the financial markets, but before we go too far down the rabbit hole, let’s just learn about the basics of figuring out how much it cost to buy options and what kind of money will be needed.

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