2min chapter

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19 - Notional Value and Risk in Theory vs. Risk in Practice

The Trade Busters

CHAPTER

What Is the Maximum Risk With the Put Side?

The put side, it is defined in a way, right? Because there is a a floor. A stock price can't go below zero, right? So even at the ten dollar entry price, or a hundred dollar price, whatever it is, you essentially know your maximum loss, or maximum risk potential with the ca side. That's where you can get into the idea of infinite risk. And thisis why they say beginner shouldn't trade this, or people get scared because of the undefined risk. But begin were gong o look at the reality of this in a second and an what the actual risk and practice is. Ok? Am.

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