Beware, Options Investors: You Pay a High Trading Price Compared With Stocks

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How much does it cost to trade in the options market? A professor ran the numbers

When financial markets are volatile, many investors head to the options market, either for downside protection or to make a bet on which way things could be heading.

With this in mind, we decided to test just how costly it is to trade options, which give the holder either the right to buy or the right to sell an asset at a set price within a given amount of time.

 

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