
tkl_m28_li_ny
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Stock option contracts will do it.
They cost a fraction of the stock and can go up hundreds of percent. They work like this:
They allow you the privelidge to buy or sell a certain stock at a specified price for a certain amount of time. You pay a premium for the time value and the difference in the price of the stock and the buy/sell option on the contract.
For example,
If you get an option to buy a stock at ten dollars, and the stock is at eleven dollars, that contract will cost at least one dollar. To have that option open to you for three years it might cost another two dollars, the total cost being three bucks.
If the stock goes from 11 to 16, the option contract is now worth at least SIX dollars, plus the time value remaining, at least a double! Of course, if the price of the stock goes down, you lose big.
The more risk you take, the more reward you can get, but you have to be prepared to lose it all. My broker could tell you, but he's not going to bother with five hundred pounds. He might do a FIRST trade with five thousand though. |