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  1. #1
    Rookie Member

    Basic Hedging, how does it work?? !!!

    Hey, just going through the BOTS school and just finished reading up on basic Hedging strategy. I'm completely new to trading so forgive me if this a stupid question. According to the first example at i dont see any positive result from hedging

    If you were simply to "Call" with 50$ and the market moves you up you'd gain 35$ and if the market moves down you would lose 42.50$.
    So all in all compared to the hedging strategy you stand to profit $7.50 more if ITM, or lose 7.50$ less OTM ? I believe i could be totally missing something here, but It seems to me the technique does more harm than good?

  2. #2
    Administrator Martin Kay's Avatar
    we have a review of the exact page -

    Try this thread as well:

    Thread is closed. Sorry for the inconvenience.

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