Options Trading Risk Disclosure from Obsidian
Options trading carries substantial risk of loss, and the Obsidian desk states those risks plainly rather than burying the risks in a footer.
What are the risks of trading options?
Options can expire worthless, causing the loss of the entire premium paid. Short option positions can lose considerably more than the premium received. Leverage magnifies both gains and losses, and short dated contracts can lose most of their value within a single session.
Does Obsidian provide financial advice?
No. The Obsidian desk provides education and software tools only. Nothing published by the Obsidian desk, generated by an Obsidian bot, or displayed inside the Cipher platform constitutes financial advice or a recommendation to buy or to sell any security of any kind.
What should a trader do before trading options?
A trader should read the standardised options risk disclosure provided by the broker, trade only with capital the trader can afford to lose entirely, and consider consulting a licensed financial adviser about whether options trading suits that trader's own personal circumstances.