How to get paid for buying Stocks!

Åsa Granberg
14 January 2019

Getting paid for buying Stocks!

No, it’s not a joke or a scam. You can actually get paid for promising to buy financial instruments such as e.g. a stock.

In the financial and capital markets there are always different strategies in different portfolios. While someone for some reason would like to buy an insurance that their financial position, e.g. a stock, is not going to decrease in value – you on the other hand might want to buy their stock at a certain price.

What you do is that you commit to buying their financial position, let’s say a stock position, at an agreed price. The presumptive seller of the stock position will pay you for your promise to buy their position at a certain price.

The risk you have is that you might not get the stock since the presumptive seller will not sell in case the stock doesn’t move below the price level that you have promised to buy it for – and then off course you have the “normal” stock market risk if there actually is a sales transaction between you and the seller so that you in fact get the stock in your possession.

Don’t you just love financial and capital markets! I'm a financial instruments/trader and capital markets expert since some 20 years so - I know I do…