Re:Cool Derivatives and Bank Consultants
by muhammedbash on Wednesday August 19, 2015 @12:43PM
(#10086729)
A stop loss is one way of having downside protection but you would use a put option for temporary downside protection i.e. the market can move against you in the short term and rebound. If you had a stop loss, you can prematurely close your position; with the put you have some insurance for the short term which allows you hold on to your position for a rebound.
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