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businessMar 5, 202614:01pending

Stop Trading Credit Spreads (Why They Destroy Small Accounts)

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Many retail investors are lured into credit spreads because they seem like a cheap way to collect premium, but they often mask a terrible risk-to-reward ratio that can quietly wipe out a small portfolio. When a trade goes against you, the defined risk of a spread forces you to take a guaranteed maximum loss instead of allowing you to take assignment and manage the position over time.

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Stop Trading Credit Spreads (Why They Destroy Small Accounts)

Peter Pru | Option Sellers School

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