BMO unveils new features for options traders, but experts caution beginners to be careful with the investing strategy
Bank of Montreal BMO-T is unveiling new features for options traders on its online investing platform, joining other institutions that are catering to retail investor demand for the leveraged and risky form of trading.
Options allow investors to bet on whether a stock will go up or down in price by purchasing a contract that allows them to sell a product at an agreed price by a certain date. A small initial investment can produce much bigger gains than simply trading stocks, but it can also lose an enormous amount of money.
BMO is decreasing the cost of trading options and regular stocks for traders on its InvestorLine platform who make more than 150 trades per quarter to $3.95 plus $1.25 for each options contract, down from $9.95 per…
