SteadyOptions is an options trading forum where you can find solutions from top options traders. Join Us!

We’ve all been there… researching options strategies and unable to find the answers we’re looking for. SteadyOptions has your solution.
Sign in to follow this  
Followers 0
Venkat

Calculate Potential Risk and Profit of a Trade

By Venkat, in General Board

Recommended Posts

Venkat    0

Venkat
Posted

 

Hi, 

I would like to calculate the potential risk and potential profit of a trade and thereby the portfolio and display them as statistics in the app that I am developing. I believe these would be useful for the investors/traders to evaluate the risk regularly and take appropriate action such as hedging, if needed.

Thought max risk and max profit may not be of much use as they would be the entire investment and infinite in most unhedged stock transactions. I need help in calculating the potential risk and potential profit of the trade with a certain probability. Appreciate if some could share the formula. Please let me know if you need any other details.

Thanks,
Venkat

 

Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account. It's easy and free!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now
Sign in to follow this  
Followers 0
Go To Topic Listing General Board

  • Recently Browsing   0 members

    No registered users viewing this page.