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๐Ÿ‡ฎ๐Ÿ‡ฉ What are the differences between options and stocks?

What are the differences between options and stocks?

Silvya Dewi avatar
Written by Silvya Dewi
Updated over 6 months ago
  • Ownership: Stocks represent ownership in a company, while options are financial contracts granting rights (not obligations).

  • Risk: Stocks do not expire, whereas options have a fixed expiration date.

  • Capital Requirements: Options require less initial capital but involve higher risks due to leverage.

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