Comment on Basics on Options Shorting/Writing

manju commented on 09 Dec 2014, 10:10 PM

Yes i know i can 🙂 I wanted to know your take on the idea of doing it. Normally shorting options is deemed riskier primarily bcoz of the reason that at expiry if youre on the wrong side,youll lose a lot. Is there anything else that makes shorting riskier than buying?

My idea is to use shorting using cover orders as a better alternative to buying(Normal product type) so that you dont need to worry about listless rangebound markets. Margin required may be higher than buying even if cover orders are used but thats the maximum we can go. Is it a good idea?

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