Options trading is exhilarating, complex, and profitable with the right strategies. However, it also comes with risks that other investment classes, like stocks, do not. If you are an options trader or are thinking of becoming one, you should always have risk management plans and strategies. Doing so minimizes potential losses and gives you peace of mind knowing your investments are not at an incredibly high risk. Today, we will look at several risk management strategies for options traders.
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