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Need Guidance on Hedging Strategy

Discussion in 'Technical Analysis' started by chequesuraj, Jun 28, 2015.

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  1. chequesuraj

    chequesuraj Member

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    Hello Friends,

    I need Guidance on Hedging Strategy...

    I have two SHORT positions open in RIL and Ashoklyand...@998 and @70.8

    To hedge these positions I have bought RIL Call 1000CE and Ashokleyland Call 70 CE and 75 CE...

    How to execute the trade now... Means should I cover the Future Short position First or Call Option Position...???:confused: Cause at higher levels I am paying MTM loss for short positions...so should i hold options till expiry which will be in profits at higher levels...

    Basically I want to know how the hedging gets executed...

    Kindly give your thought on this...
     
    chequesuraj, Jun 28, 2015
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  2. shabbir

    shabbir Administrator Staff Member

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    Hedging is executed based on time. It is started when you arent sure of the direction but once you have the direction, you take the loss part out and then execute the profitable trade.

    I am not a fan of hedging and I prefer Stop loss over hedging.
     
    shabbir, Jun 29, 2015
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