danger administration in choices shopping for – #3 by Abhilash_Patil – Common -…

Verifying margin shortfall penalty from NSE - #16 by Hardeep - General -...


It appears to be like such as you haven’t optimised your technique but. Have a effectively outlined technique with predefined entry and exit standards. Based mostly in your technique, you’ll want to examine its efficiency by again testing for various cease loss (%) and goal (%) and discover the optimum parameters.

Other than the generic recommendation for possibility patrons equivalent to have as low holding time as doable as a consequence of possibility decay, many of the danger administration which incorporates place measurement and SL (%) will rely in your technique. You’ll have to work it out your self.

You might select to not put SL and lose the entire premium if this works higher in your technique. In any other case having a SL at all times works higher.

There are not any guidelines which work on a regular basis. Some guidelines of thumb are :

  • Holding choices over the weekend are dangerous as a consequence of possibility decay on saturday and Sunday.
  • Shopping for choices in the future earlier than expiry is dangerous once more as a consequence of excessive decay.

Lastly,

In case you are new to buying and selling or possibility shopping for, don’t commerce choices. You’ll merely lose cash like water or sand slipping via your fingers. Work in your technique rigorously earlier than you really begin buying and selling, and even then be able to take heavy blows to your capital.



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