How to Hedge Futures Contracts With Options
Source: @BreaknNews
How to Hedge Futures Contracts With Options Futures contracts are highly leveraged financial instruments. When the market moves against a trade, each tick is magnified by the leverage amount. A small loss can quickly overwhelm a trader’s account and could trigger a margin call. Traders can offset some of the risk by using options as an insurance policy to hedge each futures contract. Go to your online futures…