
Options Trading Strategies Expert Tom Sosnoff Exposes Fact from Fiction with Options Trading
Money Tree Investing
00:00
Buying Power Reduction, but There's No Borrowing
In the world of options and futures, there is no leverage. There is no borrowing of capital. So everything's based on buying power reduction, but you can't borrow any money. The only way you can borrow money from a broker is when you trade stocks. When you trade futures, the borrowing costs already built into the future contract price. And wou trade options is just buying power reduction out to two standard deviations. That makes sense? Ye. I gave ou to the store. They should shut down the entire custodian business until they go back to school and learn and learn how these financial products work because they're living on legacy information that's so many decades old.
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