If your broker has already pre-qualified you to sell bare options (referred to as a margin account) you may presumably do the 1,000 share deal even with this little money. The margin privilege enables you to solely want approximately 25 % of the complete value of the transaction to proceed with the commerce. The exact share is probably not 25 p.c after a fancy mathematical computation of the margin requirement. However for this practice let’s merely use 25 p.c to simplify issues.
A broker is obliged to advise you of the charges charged for the providers provided to you, so there aren’t any hidden prices. Fees should be set out throughout the Financial Suppliers Information, Product Disclosure Statement (PDS) or the place a broker has provided you with private monetary advice, the charges and costs related to their recommendation shall be set out in your Assertion of Advice.
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