What is Protective Put?
Protective Put — Buying a put option on shares you own, as insurance against a fall in price.
In simple terms
A protective put limits your downside for the cost of the premium.
Why Protective Put matters when you invest
Understanding protective put helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Protective Put — frequently asked questions
What is Protective Put?
Buying a put option on shares you own, as insurance against a fall in price.
What does Protective Put mean in the stock market?
Buying a put option on shares you own, as insurance against a fall in price. A protective put limits your downside for the cost of the premium.
Can you give an example of Protective Put?
A protective put limits your downside for the cost of the premium.
Put it into practice — open a free account.
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