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ZAby u/zeynep.arslan·1dQuestion

Question on hedging/volatility in oil trades

Hey everyone, still getting my feet wet with commodities, specifically $WTI. I'm trying to get a handle on how some of you more experienced traders manage the swings. I understand the fundamentals drive a lot, but sometimes it feels like a coin flip with geopolitical events. Are you folks usually using options to hedge your spot positions, or is it more about sizing down significantly when volatility picks up? I've seen some discussions on dynamic hedging, but it feels a bit advanced for where I'm at, and I'm wondering if there's a simpler, effective approach that seasoned guys use for managing the outsized risks when the market gets really choppy.

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