More importantly, the protection offered by the calls is only ... Despite its drawbacks, the strategy of using calls to hedge a short position can be an effective one. In a best-case scenario ...

While there is no such thing as a perfect hedge, we've covered many ways to use stock options to help protect your stocks in a falling market, including strategies to hedge your portfolio with options ...

Although the investor has to pay a premium for the option, it protects their position from potentially higher losses. Short sellers can protect their positions by setting a buy-stop order with an ...

If you own a stock in a particular industry but want to hedge against an industrywide risk, then shorting a competing stock in the same industry could help protect against losses. Shorting a stock ...

Once you’ve established your short euro position, you can enter trailing stops if your position has a profit to protect it. You will also definitely want to limit your risk, which you can do by ...

If you can’t meet the margin call, Charles Schwab could liquidate your position for a loss without informing you. Here are the steps to get started on a short position Your first step is to ...

But exactly how does one position a portfolio for downside protection? That's what we'll ... at least in the short term. Meanwhile, government bonds can often rise in value as share markets ...