1. Option Buying Risks
High time decay
Entire premium can be lost
Low probability of profit if market does not move fast
2. Option Selling Risks
Unlimited loss potential
Requires high margin
Needs strong risk management skills
3. Volatility Risk
Changes in implied volatility affect premium prices.
4. Liquidity Risk
Low liquidity leads to poor fill prices.
5. Emotional Risk
Options move fast, causing psychological stress for beginners.
Thus, risk management, position sizing, and discipline are essential.
High time decay
Entire premium can be lost
Low probability of profit if market does not move fast
2. Option Selling Risks
Unlimited loss potential
Requires high margin
Needs strong risk management skills
3. Volatility Risk
Changes in implied volatility affect premium prices.
4. Liquidity Risk
Low liquidity leads to poor fill prices.
5. Emotional Risk
Options move fast, causing psychological stress for beginners.
Thus, risk management, position sizing, and discipline are essential.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicaciones relacionadas
Exención de responsabilidad
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicaciones relacionadas
Exención de responsabilidad
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.