This process, termed leverage, provides you with the ability to take on extra chance and gain far more publicity for prospective gains with less income upfront. But leverage really should not be taken frivolously, as that more danger suggests you have a increased opportunity to shed The cash you've got invested. In addition, more info you ought to meet specified prerequisites to margin trade.

Employee stock options absolutely are a sort of employee fairness compensation. Firms might present options as Portion of an indication-on bonus or retention application.