CFDs explained: A beginners guide
In fact, even if the market drops to zero, the loss would only be 10% if this put option is held. Again, purchasing the option will carry a cost (the premium), and if the market doesn’t drop ebay stock price quote and news during that period, the maximum loss on the option is just the premium spent. If in six months the market crashes by 20% (500 points on the index), they have made 250 points by being able...
