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Visaria
Registered: Sep 2004
Posts: 3866 |
10-22-12 01:18 PM
No, i was fortunate in that i had a tight stop and was taken out after the first plane hit. The market, after stopping me out actually went back up a bit and then suddenly smashed down after the 2nd plane hit.
If i had a larger stop in that particular case, i would have had huge slippage, or may even been locked out when the markets were closed down.
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oldtime
Registered: Jun 2011
Posts: 7479 |
10-22-12 04:29 PM
Quote from Visaria:
Not true.
ok, another brilliant reply from you
that makes about ten where all you post is "not true"
who are the traders making a living full time that do not need and use margin?
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syswizard
Registered: Jun 2004
Posts: 3640 |
10-22-12 05:13 PM
Guys - options are the classic instrument for hedging. However, that does NOT mean they are cheap....you'll have to pay a price for the hedge.
For instance, Copper has been moving fairly well recently, but margins are about 5500. And you get a margin call if you are down only 7 cents which is only about one-third of the limit move.
So going into the weekend, if you are long, you'd place a market order for the at-the-money copper PUT contract for the current expiration month. (Use CALLS for short positions in the futures).
WIth the above hedge, a limit move has little to no impact on your overall position balance.
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oldtime
Registered: Jun 2011
Posts: 7479 |
10-22-12 05:35 PM
very expensive over the long haul
for the few times they save your ass, you probably over the course of a year only break even
that is, you would be better off just taking the hit
like I said, 50% of the times these gaps go in your favor
I'm not in love with my positions, I can just close them out and get flat for very little cost, commissions aren't too bad, spread can be a little rough
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syswizard
Registered: Jun 2004
Posts: 3640 |
10-22-12 05:48 PM
Quote from oldtime:
very expensive over the long haul
Have any stats or account statements that prove that statement ?
dotm puts are cheap, but offer only some protection.
ATM puts are expensive, but offer full protection.
Options are flexible in that regard....pick your risk level.
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