Multipliers in options trading
This lesson assumes that you understand your financial goals and are familiar with all the risks and opportunities online trading provides. You can schedule a free call with our expert trader that will help you find the best way to achieve your financial goals.
Before we dive deeper into money management and position sizing, we have to look at the term multiplier. The multiplier provides information about the value of the option position. The price of the option is multiplied by the multiplier.
Stocks and ETFs have a multiplier of 100
For equities (stocks and ETFs), the multiplier is al