In options trading, the buyer playing themselves to death is actually much easier—far easier than the seller's risk control failure, roughly about 3000 times the difficulty difference.
To put it simply, many options buyers don't even understand why they are paying. They have no idea how the price of the contract they bought is calculated, what risk factors are involved, or what’s inside. In contrast, the seller at least knows that hedging is a complex task that requires real skill to manage. And the buyer? Completely unaware.
This is the most frightening part—ignorance combined with overconfidence. Concepts like options pricing, time decay, and implied volatility are rarely understood seriously by most buyers. What’s the result? Account explosions. To learn options, instead of blindly trading, it’s better to master the basics first and understand exactly what you are trading.
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In options trading, the buyer playing themselves to death is actually much easier—far easier than the seller's risk control failure, roughly about 3000 times the difficulty difference.
To put it simply, many options buyers don't even understand why they are paying. They have no idea how the price of the contract they bought is calculated, what risk factors are involved, or what’s inside. In contrast, the seller at least knows that hedging is a complex task that requires real skill to manage. And the buyer? Completely unaware.
This is the most frightening part—ignorance combined with overconfidence. Concepts like options pricing, time decay, and implied volatility are rarely understood seriously by most buyers. What’s the result? Account explosions. To learn options, instead of blindly trading, it’s better to master the basics first and understand exactly what you are trading.