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Effective risk management is vital for achieving consistent success in intraday options trading. One of the foundational principles is proper position sizing—traders should never risk more than 2–3% of their total capital on a single trade. Lot sizes must be chosen based on the account size, and over-leveraging should be strictly avoided, even in seemingly attractive setups. Equally important are disciplined stop-loss practices: for buying strategies, it’s advisable to set a stop-loss at 30–50% of the premium paid, while for selling strategies, a stop-loss at 2–3 times the premium received helps limit losses. Additionally, traders should consider time-based exits if the market doesn't behave as anticipated by a certain time. In high volatility environments, such as the current VIX level of 18.58, traders should reduce position sizes, use slightly wider stop-losses to prevent early exits due to market noise, and consider hedging their trades with offsetting positions. Gap risk is another major concern—monitoring GIFT Nifty can help anticipate potential opening gaps, and during uncertain periods, it's wise to avoid holding overnight positions or use protective options as insurance. Practical risk management includes pre-defining exit rules before entering trades, monitoring key Greeks like Delta and Theta to understand how trades may evolve intraday, and staying alert to time decay, especially toward the later part of the session. Ensuring sufficient liquidity through tight bid-ask spreads is also crucial for smooth entries and exits. Lastly, having emergency protocols in place—such as holding cash for adjustments, knowing when to accept losses, and being mentally prepared for adverse moves—can make the difference between short-term setbacks and long-term sustainability.

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