There is no real difference in loss potential in the options and the commodities markets.

Name: There is no real difference in loss potential in the options and the commodities markets.
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Question

Quizplus · Accepted Answer

The futures contract requires an initial margin, which can be parlayed into large profits or immediately wiped out; whereas an option requires the payment of an option premium, which represents the full extent of an option purchaser's liability.

There Is No Real Difference in Loss Potential in the Options