Comment on Option buying: The riskiest trade out there

Deepti commented on 22 Jul 2021, 10:49 AM

There may be 80% traders who trade without proper understanding and lose money but in trying to be a parent to them, is it wise to make the 20% knowledgeable traders suffer in the process and end up not being able to make money? With restrictions on buying far otm options, short positions can not be properly hedged. It is like a vicious circle – to reduce margin you need to hedge by buying otm, but to buy otm you need to have short position first which can be done only if you have full margin. And many a times even if you have unhedged short positions, platform doesn’t allow to place buy order for otm. Hard to digest the parental love of Zerodha.

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