@vargamon give a balanced example. don’t be bias towards options because you favour “lucrative” over “straightforward”.
what you neglected to point out is that with every option you pay a premium which you forfeit regardless of which direction the price goes. If you guess right, then you first need the price to change enough to cover your premium before you see any profit, if it doesn’t change you lose your premium, if it goes the other way you lose your premium.
now sure, you will claim losing the premium is better than losing everything, but that lost premium means less to open your next position and that false sense of security prompts the individual to gamble again. on top of that the price is determined by so many different things that its hard to even tell what is going on while CFDs only have 2 things to consider based on the actual stock, the spread and the financing.
Options can be called by the person on the other end of the trade, CFDs are only called when you either decide to or when the position has lost enough money for a margin call, which is aimed at preventing you running into the negative like what happened with Mr “Idiot” 1RONYMAN. the fact he can pull off a -$58k balance is enough proof options are no better than CFDs and potentially worse. If an idiot can pull it off, anyone can replicate it, making options no more secure than CFDs.
with CFDs you can lose all your money, same for options. Options really are not that popular in Europe exactly because of their complexity. Losses always come down to the individual above all, the individual made a bad judgement call, blaming CFDs vs Options as the reason. don’t want to get margin called? don’t risk your entire balance on a single gamble. all the serious traders I have seen have a whole slew of positions with any single CFD having minimal impact on the overall margin, they also trade at leverages of up to 500x as professionals and do just fine for themselves.
https://community.trading212.com/t/option-trading-on-trading-212/1194/5?u=dao
for people who want to know the differences: