How to do non-speculative trading?
a small Tip can make your trades a great impact
Suppose you select a good stock and long an Ethereum worth 100$ in futures
then
you hedge with a bad stock and take a short call on that stock with 100$
Now what happens?
if the market moves in a positive direction
Ethereum moves to the long side and gets a profit of suppose 120$ where you get 20$ profit
the other bad stock also moves in a positive direction and gets a loss of 90$ where you get a loss of 10$
so your profit will be 20$ - 10$ = 10$
opposite side also vice versa