OPTIONS 101

摘要

Not sure if trading metals options on Comex or the LME is right for you? Here's an overview of how this financial tool works, plus a look at its pitfalls and possibilities.There seem to be two schools of thought about the financial tool known as options, which scrap dealers can use either to hedge or speculate on the exchange-traded metals markets like Comex and the LME. Some see options as the "best of both worlds," promising unlimited profit potential with limited risk. Others say they are simply too hard to understand.As with every financial instrument, the reality is that there are both advantages and disadvantages to using options. Certainly, they aren't the proverbial free lunch. So you'll have to decide for yourself whether the potential benefits of options outweigh the possible drawbacks.