limited risk

limited risk
A concept often used to describe the option buyer's position. Because the option buyer's loss can be no greater than the premium he pays for the option, his risk of loss is limited. The CENTER ONLINE Futures Glossary
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The risk inherent in options contracts, which is much lower than that of a futures contract, which has unlimited risk. The maximum loss in buying a call option, for example, is the premium paid for the option. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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