Mar 17, 2010


While trading, money management is equally important ,if you don't respect the rule it will harm you.
Take this, Before few days ago we have given sell nifty @ 5085 with ,exit at 5235.
Hedging position of buy march month 5200 call at 30 and buy 5300 April month call at 30.
Today we squared off the position. what will be the loss if any one who have not follow the hedge (money/risk management)? 7500 loss per lot?
But wait our clients book profit in 5200 and 5300 call at respectively 75 and 105 we make profit of 6000.
Now our net loss if just 1500 per  lot.
And yes with that we  have given buy 5200 put 23 and flared to 32 still we continue to hold the same.
Posted on Wednesday, March 17, 2010 | Categories: