Why people lose money in derivatives
by Munish Oberoi on Aug 28, 2007 04:49 PM

I hear a lot of stories from a lot of investors who complain that they lost a fortune while trading in derivatives. Almost

all of them are lay investors or first timers, the rookies, but a lot of times even those who consider themselves a "seasoned

pro" in the equity market, when they dive into the Options market, come out of it with their clothes taken off their backs.

These people will then go on to tell others their horror stories and scare the hell out of others who are thinking on

entering the Options market.

So let me analyze why this happens to so many of these people.

Forward | Report abuse