29 - Credit Received as a Proxy for Risk
The Trade Busters
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The Credit Received as a Proxy for Risk
This chapter explores how the credit received in trading acts as a measure of risk, focusing on the use of stop loss as a loss control mechanism and the impact of gaps on strategies. It also discusses the higher gamma risk in certain cases and provides examples of losses using various strategies, emphasizing the correlation between credit received and potential loss.
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