LEARN HOME / RISK
Risk and limits
This learning area explains mechanics. It does not tell you what to trade, whether a contract fits your situation, or what result to expect.
What this site does not provide
- No live price feed or executable quote.
- No broker connection, order entry, or account access.
- No personal recommendation, suitability assessment, or portfolio allocation.
- No promised income, win rate, probability of profit, or forecast.
- No current broker-fee, tax, legal, or regulatory advice.
How to read examples
Every example should carry one label. Read the label before you use the number.
| Label | Meaning |
|---|---|
| Illustration | Made-up numbers used to teach a step. |
| Live snapshot | A dated market or broker screen used for education only. |
| Historical reconstruction | Past information rebuilt later. It was not an actual order fill. |
| Proxy | A calculated estimate. It was not an executable price. |
| Actual trade | Used only when the order, fill, date, costs, and publication permission support it. |
What to check before you act
- Your broker's current options permissions, cash treatment, fees, and expiry/assignment rules.
- Market-data timing and whether a displayed quote is current and actionable.
- How exercise, assignment, early assignment, and any forced liquidation work at your broker.
- Your tax, FX, and legal position with qualified local advice where needed.
- Whether you can fund assignment without borrowing or being forced to sell another holding.
One final checkIf you cannot explain the full cash commitment, the loss path, and the reason you would close or accept assignment, do not place the order.