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On a per transaction level, for every dollar someone makes on a put/call option, the other person has to lose equivalent. Even more when you factor in exchange
by SJC_Hacker 1y ago
On a per transaction level, for every dollar someone makes on a put/call option, the other person has to lose equivalent. Even more when you factor in exchange fees
Hedging is just an additional transaction that limits the damage if the bet doesn't pay off. You can do the same thing in gambling.