Which Type of Trade is Less Risky

Option give the best opportunities to trade with less margin and less risk.

I am an option trader and I can tell about options. The less risky strategies in option strategies are the Iron Condor and Iron Fly. In both these cases you risk is limited and as the risk is limited the profit is also limited. But if you trade this strategy over a period of time say in a year you can make a return of around 20% or more if the market is kind to you. These are positional trades.

If you wish to trade intraday then Strangle and Straddle are the best strategies with proper stop losses in places. They will give an average return of 0.3 to 0.5 percent a day if you trade consistently over a period time.

There are a large number of other strategies but as they are complicated I have not mentioned them. The strategies mention above are very simple, especially even for beginners, and easy to use. The added advantage is that you don’t have to sit in front of the computer and monitor them.

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