Is there high probability for loses?
What are the things to know before investing in the derivative stocks and options?
2006-08-28 06:53:41 · 4 answers · asked by scool1 2 in Business & Finance ➔ Investing
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2006-08-28 13:18:50 · answer #1 · answered by stock_trade_expert 3 · 0⤊ 1⤋
Yes -- they are good investments if you understand how they work. However, they may not be a good investment for you.
On their own, they are extremely risky -- but used together with other financial instruments, can actually lessen risk and enhance returns.
Before investing in options, you should understand everything in John Hull's book OPTIONS, FUTURES and OTHER DERIVATIVES published by Prentice Hall.
2006-08-28 13:59:39 · answer #2 · answered by Ranto 7 · 1⤊ 0⤋
only a trained advisor should even attempt to answer such a question, and only after they have fully established your attitude to risk and what your saving/investment objectives are.
2006-08-28 13:56:42 · answer #3 · answered by Munchkeen 2 · 0⤊ 1⤋
If you are asking these questions you should not invest in them...Simple.
2006-08-28 14:19:25 · answer #4 · answered by Who me? 3 · 0⤊ 1⤋