Do we need to have an SL order for an Emini Fut contract for which I have a Put purchased ?
Is SL order required for an Emini Fut contract for which I have a Put purchased ?
- Thread starter traderwald
- Start date
Robert Morse
Sponsor
If SL is sell long, the tagging of the hedge has nothing to do with your option position. And, most future’s platforms don’t require you to tag a future’s order as long or short as their is no borrow. That said, you need to ask your broker about that part.
I mean just as a general trading strategy rather than a requirement by the platform or dealer. For example if I buy 1 ES contract and have a put to hedge the same, do I still need to have an SL order ? (Because typically traders are advised to have a SL as a standard practice when trading)
Robert Morse
Sponsor
I do not really understand the question as you have asked it, so I'll let others try.
I am trying to check a strategy hence the question. Is SL essential when I have a put (not from anyone requiring me to have it, but as such) ?
Robert Morse
Sponsor
Essential. Maybe. If the Put is OTM, you still need to decide the most you are willing to lose on any one trade. The answer is very subjective. I would prefer to buy a call, vs Future + Put, as the net is the same, but there is only one commissions and a positions that is easier to manage. Your risk is then limited to the value of the call. Put + Future is the same but harder for many to visualize.
You seem to think there is one answer. Trading is not that simple.