• Gangmumei Kamei

The paper looked into the different risk management strategies employed by stock market traders and its importance while trading in options. For the study, 100 participants (50 male and 50 female) traders from Delhi were chosen. For the purpose of data collection, semi-structured interview was used and thematic analysis for analysing the data. Since trading in financial market involves financial capital which could either lead to profits or losses, most of the participants have the knowledge of risk management but failed to implement it during actual trading. Some of the risk management strategies used by the participants were setting appropriate stop losses (SL); reducing lot size; avoiding multiple strategies; clear entry and exit plan; maintaining trading journals; following appropriate trading levels etc. It was observed that maximum of the participants (both male and female) incurred net losses despite having risk management plan due to lack of implementing their trading plan and following the appropriate levels. Only few traders who have been in the market, experienced the volatility and follow the appropriate trading plans and levels for some years had managed to survive in the market. Controlling the emotions, mind and greed in trading were reflected as crucial in addition to the physical risk management in options trading.

Options trading, stock market, risk management; volatility, emotions

"Risk management in options trading: Case studies of male and female traders in Delhi", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 4, page no.87-93, April-2018, Available :http://www.jetir.org/papers/JETIR1804478.pdf

"Risk management in options trading: Case studies of male and female traders in Delhi", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.5, Issue 4, page no. pp87-93, April-2018, Available at : http://www.jetir.org/papers/JETIR1804478.pdf