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Equities
You buy options for hedging and leveraging exposure.
There are 2 types of options:
In both cases, the buyer of the option pays a premium to the seller of the option. Options are not suitable for all investors, as they carry significant risks. Only recommended for experienced investors.
Important Notice
This publication is for general circulation only. It does not form part of any offer or recommendation, or have any regard to the investment objectives, financial situation or needs of any specific person. Before committing to an investment, please seek advice from a financial or other professional adviser regarding the suitability of the product for you and read the relevant product offer documents, including the risk disclosures, which can be obtained from DBS Bank Ltd. If you do not wish to seek financial advice, please consider carefully whether the product is suitable for you.
If the market moves against an option position, a purchased option may expire worthless. The investor will then sustain a total loss of the premium and transaction costs of buying the option.
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