4 ms·
maybe not with financial derivatives with potentially unlimited downside
by agency 2y ago
maybe not with financial derivatives with potentially unlimited downside
- missedthecue 2y agoThe point of financial derivatives is that the downside is limited.
- airstrike 2y agono, that's the point of hedging. derivatives can have unlimited downside
- jnwatson 2y agoOnly if you're long. There are plenty of unlimited risk options strategies.
- dhbanes 2y agoThis is absolutely not true.
- vgatherps 2y ago“Financial derivatives” and “downside is limited” should never appear in the same sentence without strong conditions on what sorts of derivatives/ combos of them
- frank_nitti 2y agoI think people in the thread are mistakenly conflating the idea of buying options with writing options to sell, the latter of which can have unlimited downside