dude, I never argued for no leverage. I argue for an industry set cap on leverage. You purposely ignore my point or just dont get it...
Re options, as you seem to have never traded any, there is an exchange mandated minimum margin set for futures and options. Long options need to be paid up in full while every kid can read and easily calculate the minimum required margin on short option positions. Brokers are allowed to set even more stringent standards for their clients but not lesser ones. If you now purchase an options contract then you can of course chose one that gives you a lot of leverage but your risk is clearly defined. Plus you fully paid up to your broker, which in turn passes it on to the exchange and so on. Everything is paid for, everything is fully regulated and in control. Never has a single options exchange failed. This cannot be said of various shady fx brokers who come one day and go the other, leaving all other clients on the hook. Difference is OTC vs listed...no magic here. Anything else you dont comprehend?
Re options, as you seem to have never traded any, there is an exchange mandated minimum margin set for futures and options. Long options need to be paid up in full while every kid can read and easily calculate the minimum required margin on short option positions. Brokers are allowed to set even more stringent standards for their clients but not lesser ones. If you now purchase an options contract then you can of course chose one that gives you a lot of leverage but your risk is clearly defined. Plus you fully paid up to your broker, which in turn passes it on to the exchange and so on. Everything is paid for, everything is fully regulated and in control. Never has a single options exchange failed. This cannot be said of various shady fx brokers who come one day and go the other, leaving all other clients on the hook. Difference is OTC vs listed...no magic here. Anything else you dont comprehend?
