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nmymnd

Joined: 07/30/2001 Posts: 740
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There are a couple of ways


1. There are ETFs that are the inverse of the market. Some of them are multiples of the market, so a 10% decline would yield you more than 10% up. But, be careful as they are really bad if the market goes the other way.

2. You can buy puts (options that put you in the money if the stocks they are bought against go down). You have to qualify and do paperwork with your "broker" to do them, but they can work and your downside is limited to what you pay for the puts.

3. Sell some stocks short. Definitely can work, but if the stock goes up instead of down, your possible cost is unlimited.

But, you can do it.

(In response to this post by HokieDelNorte)

Posted: 01/06/2021 at 3:18PM


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Current Thread:
 
  How does one "hedge" stock market risk? Not looking -- HokieDelNorte 01/05/2021 5:59PM
  There are a couple of ways -- nmymnd 01/06/2021 3:18PM
  If you don't have a plan already you're in trouble. -- 133743Hokie 01/05/2021 10:28PM
  ...Bulls make money, bears make money, pigs get slaughtered -- chumley 01/05/2021 7:32PM
  You could buy ETFs to short the market -- 96Hokie96 01/05/2021 7:30PM
  Real talk in your case you just need to start reducing exposure, period -- Synaesthesia 01/05/2021 6:56PM
  Think of money as water flows. When the US market drops, where does 💸 go? ** -- ColoVT82 01/05/2021 6:45PM
  To china...duh.... ;) ** -- Vtskier1 01/05/2021 10:04PM
  Depends whether you prefer boxwoods or holly ** -- HokieDan95 01/05/2021 6:01PM

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