TL;DR
Portfolio protection refers to strategies that investors use to minimize losses resulting from market fluctuations. Especially, VIOP, options contracts, and diversification can provide risk management.
8 min readPortfolio protection with VIOP, gold, and cash. Methods to limit losses during downturns.
Portfolio Protection
For detailed information, see our portfolio management guide. Consider alongside diversification and rebalancing strategies.
Application on BIST
Use our stock screener and portfolio simulator to apply this strategy on BIST. Measure risk-adjusted performance with the Sharpe ratio.
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Go to Simulator →Related articles: Portfolio Management Guide, MPT, Diversification, Rebalancing.
Frequently Asked Questions
What is portfolio protection?
Portfolio protection refers to the efforts of investors to shield their financial assets from adverse market movements. These strategies are used to prevent losses and make more informed decisions.
How do hedge strategies work?
Hedge strategies are employed by investors to protect against fluctuations in the value of financial assets. For example, an investor can buy options to hedge against the risk of a price drop when investing in a stock.
What is VIOP?
The Futures and Options Market (VIOP) offers investors options and futures contracts that give them the right or obligation to buy or sell an asset at a specified price on a specific date.
What is diversification and how is it done?
Diversification is the distribution of risk by investing in different asset classes. For example, you can diversify your portfolio by investing equally in EREGL, TUPRS, and FROTO stocks.
What are options contracts used for?
Options contracts provide investors the right to buy or sell stocks at a specified price. This helps investors secure themselves against potential losses.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
