The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to be talking about why everything is leveraged. This actually comes up from a discussion I was having with somebody the other day and they basically said, “Look, Kirk. I don’t want to invest in anything that has to do with margin.” And I was talking about how when you trade with options, sometimes depending on the account that you have, you have to put up margin. Not that you have to borrow a margin, but you have to put up margin to cover potential losses on positions and that’s how brokers allow you to then trade a leveraged product like options, is you have to put up margin. And they basically said, “Look. I don’t want to ever, ever, ever trade anything with leverage. I don’t believe in it. I don’t want to do it. I just want to invest in regular stocks and the stock market industries.” And I told them and I said, “Look. Everything is leveraged.” Even your regular traditional investment in any stoc