Re: How to hedge future contract without using Option ?
Yes. I asked to omit option ..because option liquidity was bad in the future underlying I am interested in.
CFD product not there in our exhange.
Yes...its imperfect.
phew....I don't see any nice workaround finally :)
Thanks for...
Re: How to hedge future contract without using Option ?
I wont be able to close the original position in gap up/down !!...simply I'll be crushed ....thats the point I was making ...because market is NOT open 24x7
sorry...I forget to mention that its not forex where 24x7 market is open ...
Re: How to hedge future contract without using Option ?
did not like your comment......It did not answer to my query properly.
Thanks for your time anyway.
Re: How to hedge future contract without using Option ?
Fine .......but problem is , how do you protect yourself from overnight gap up/down risk with this ? I see this risk very high . stop loss order wont work here....Is there any workaround to this ?
Re: How to hedge future contract without using Option ?
I understand your point. ..... But position sizing wont help much in my case....because there are no micro lots ....lot size starts with big volume ....I can not control that part....so I am looking at reducing upside and also...
Re: How to hedge future contract without using Option ?
But do you suggest to trade naked futures without insurance ?
I am not comfortable with that. ........ I am looking for a conservative approach.....I'm willing to sacrifice little profit with a limited risk.
Could you please suggest...
Re: How to hedge future contract without using Option ?
I like your strategy. Could you please tell entry and exit rule to get profit in this Strategy ?
I saw few videos from tastytrade & few material of thinkorswim platform.
I have feeling that they advocated for this starategy when expiration is very close..2 weeks .....
But I just started a new month expiry ...I have 30 days to expire ...I am not getting decent premium credit also.
I...
have some query here.
I understand you would favour to close the trade as soon as 50% profit is achieved....you want a slice ...not the full cake...fine.
but what I fail to understand is , shall I take a wider strike difference or a narrower strike difference.....I am unable to decide this...
I am willing to take a call on (2) Call Credit Spread ..........I am happy as you said 30 days to expire is also good enough for Credit Spread.
But I did not understand that blue part of your comment....an example will be excellent in this context.
Let me take an hypothetical example.
say...
correct.
How about BEAR CALL SPREAD ?
How much winning percentage 3 & 4 normally will give ? approx ?
I assume you mean I can apply your Strategies safely if I am 30 days far from expiration.
correct.... we dont have micro size lots ....so I can not go with the position...
Thanks for the post.
bid/ask is good in my stock...acceptable range.
Please dont get me wrong ... I would like to post few criticisms on your remark for a healthy discussion.
I already had some homework on my own....and so posting some concerns here
some issues I find here is ..
(3) & (4)...
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