That is a lot different than say FOREX trading where you have
virtually unlimited risk until you get to your stop level.
Buying options therefore exposes the trader to limited risk, compared to
the virtually unlimited risk of going long or short on a stock.
Not exact matches
A single error can be catastrophic, and the potential
risks are
virtually unlimited.
Options — Option buyers have
virtually unlimited gain potential while the amount at
risk is limited to the premium paid.
The
risk of loss associated with short selling is
virtually unlimited.