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High-Frequency Options Scalping: Risks and Regulatory Considerations
High-Frequency Options Scalping: Risks and Regulatory Considerations
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BTCCSquare news:
Options scalping represents one of the most aggressive trading strategies in financial markets, leveraging rapid time decay and inherent contract leverage for quick profits. The practice carries substantial risk—participants may recover less than their initial investment, and total loss scenarios are not uncommon.
Regulatory frameworks mandate explicit risk disclosures, requiring brokerages to provide Options Disclosure Documents (ODD) before approving traders. Promises of guaranteed returns or minimized risks should be treated as red flags, as no such assurances exist in high-frequency options trading.
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