In the stock options trading market, if investors want to conduct intraday trading, then stop-profit and stop-loss are very important for investors' transactions. It is very important to stop losses and take profits in options. Options are not like stocks because they are leveraged and have a very large rise and fall range. So why should options stop losses? Can I set a stop loss in options trading?

Source Baidu: Caishun Options

Why should options stop losses?

Many people are not always watching the market. After you place an order, you may have something urgent to do, but if you leave the order alone, it will easily liquidate your position, so you have to set a stop limit. For stop-profit, in order to prevent investors from being greedy, it is best to set a static stop-profit, but you must pay attention to strictly abiding by the strategy.

The purpose of investors stopping losses in 50ETF options is to protect their investment costs. If investors want to survive in the options market for a long time, they must pay attention to stop loss. Stop loss allows us to retain enough investment costs to seize better opportunities. Setting an exit point when investing in 50ETF options is a very effective way to control risks. It is very simple to calculate and very easy to execute. Generally speaking, we can set the stop loss point at About twice the cost of 50ETF options.

Can I set a stop loss in options trading?

One of the charms of options is that they are highly leveraged and can make huge returns during big market conditions. However, many people ignore that risks and returns are intertwined. While achieving high returns, there are also greater risks. In options trading, if you insist on blindly fighting without leaving any way out, and only pursue profits without controlling losses, then there is a high probability that you will be eliminated by the market in the end. In the options market, stop loss refers to when investors find that their investment direction or choice is wrong, and when the loss reaches a certain level, they choose to exit the market in a timely manner. This method of closing the position is used to avoid placing orders and causing further losses. Big losses.