Protection floating profits using options
In this article, we will discuss the principle of the protection of floating profit using options *.
Such a need arises when the market reaches the intermediate
purposes or important price level, when to close the entire position early,
but high risk of developing an adverse price movement.
Content
Accompanying position
Buying an option to protect the floating profit
When the optional hedging does not make sense
Summary
Accompanying position
side by side
with the correct entrance and exit from the market any trader often faces
with the need to adjust the position between these points.
this
It occurs when the direction of the main trend in the market is not
It changed, but there is a risk of unwanted price movements.
For example:
the market is moving in the right direction, but it reaches a certain predetermined milestones and may begin to be corrected;
price
It begins to fluctuate around an important price level in the near future
the market may stop switch to flat or even turn around;nearing
important event that may significantly affect the state of the market
(Statistics of the company, an important political statement or
economic sense, elections, referendum, etc.)
article Continued
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