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Same with airlines, hedging oil prices via futures and options is incredibly important for them to be able to price out flights a year in advance. But that doe
by dx034 6y ago
Same with airlines, hedging oil prices via futures and options is incredibly important for them to be able to price out flights a year in advance.
But that doesn't explain why a 20 year old with no income should have access to these instruments. There's a reason most banks wouldn't allow that, in the end the platform probably has to cough up the money.
- manigandham 6y agoIncome doesn't matter. As long as your account has funds, you trade with those until they're depleted. You don't get access to options by default, and even then there are levels of approvals before you can do advanced trades. If they require margin, your broker will keep watch and instantly liquidate if you go negative. That's the whole point of a "margin call". It's very rare that a broker will lose money because of a retail trader.