Disliked{quote} Hey Kevin. Hope you're well. A question related to the Swiss bank/franc debacle a year or so ago. In FX, many folk lost a lot because market moved so fast, stops couldn't be filled. This could happen again. But with options, is a traders risk protected? e.g. can you sleep at night? lol. I'm new to options so still learning the process, but I'm told it's less risky with regard to a market crash like the swissy. Thanks, GB.Ignored
Yes, with options, your risk is always protected, and WELL DEFINED in advance. Many times, trades will stay open for multiple weeks, and only require once a day monitoring. No qualms at all about sleeping at night, and imo much less risky to market crashes. In fact, when markets begin to unravel, that only elevates volatility levels (RVX, VIX, VXX) and create much more desirable entries for new trade positions.
Hope that helps, and don't hesitate to reach out while you are learning.