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Hello folks, as told reviewing credit spread vs diagonal.
First of all understand why otm credit people do even after risk reward very bad. First of all better than naked as hedge loss limited and margin benefits in both.
First of all understand why otm credit people do even after risk reward very bad. First of all better than naked as hedge loss limited and margin benefits in both.
Credit spread/dia. traded by professional when view sideways to minor directional even some room on opposite side as well. If purely directional then go 4 debit as risk low reward high.
I m talking about zero credit diagonal only go as per snap of example and see wat i m telling.
I m talking about zero credit diagonal only go as per snap of example and see wat i m telling.
1. First of all if we compare diagonal hv better probability of profit than Credit.
2. Max profit also big in diagonal but if hit max zone, if sideways then almost same profit but pure trendy market hv to shift diagonal or winning leg. Only moving is drawback which not big issue.
2. Max profit also big in diagonal but if hit max zone, if sideways then almost same profit but pure trendy market hv to shift diagonal or winning leg. Only moving is drawback which not big issue.
