In the case of the Married-Put strategy, a put option is paired with a share, that is to say, bought at the same time. In principle, hedge speculation is not carried out; a purchase stop is set Social Trading review 2017 at best. There is much more a main and the diametrical counterposition taken and irrevocably linked.
Motivation and risk with the Married Put
The risk for the share package is, for example, significantly limited if the investor undertakes to repurchase the share package at the strike price of the IQ Option review 2017 put and thus realize the profit of the put. There is practically always a point at which the trader can drop out of the business without loss, but he has to provide a speculative instrument for this. The basic thesis for the Married Put is that the share price will increase, but the course is hardly predictable, so secret info well that a hedge should at least Copy Trading review 2017 be provisional. The share can be sold if necessary, but the profit of the put option is realized.
Graphics: Married Put (Strategy):
However, there are also private and institutional investors who wish to retain their share position even in the event of a drop in prices. Companies must, for example, hold shares on the basis of percentage shareholdings, and some private investors are also plus500 review 2017 strongly convinced of a business idea. In such cases, other hedging strategies must be applied, since the Married-Put is also eligible for the issue of the share package. The stock itself is, of course, not selected according to individual preferences, but purely economic considerations. If the speculation is in vain, it is sold again. For this purpose, a threshold is set which allows the trader to go out of business without loss. anyoption review 2017 Until the threshold has been reached, the investor has earned nothing or less in the share, which is the main risk in this strategy.
Assessment of a Married Pipe etoro review 2017
The Married-Put is particularly suitable for hedging a share package, especially in very volatile markets, as a neutral investment is generated within a certain price channel. The lower limit of this price channel is at the same time the selling threshold for the share package. Whether a profit-limiting or loss-hedging stop is set is absolutely indifferent. If a profit margin is set for the put option, it is speculated that the stock, which is still in 24option review 2017 the loss, soon again a price increase