Adjusting Margin and Risk · Tips and Tricks to Reduce Margin Requirements and Alleviate Margin Calls (FT Press Delivers Insights for the Agile Investor)

How to use options to dramatically reduce the market risk that represents your #1 concern as a trader.

Market risk is the trader's single biggest concern when buying stock. If you put money into shares, you risk losing much of it when the market goes down. You cannot completely eliminate market risk. However, you can use options to create synthetic positions that vastly reduce it. You can create a position that will virtually duplicate a stock's behavior, for a fraction of the cost....