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It is also specified that once a member reaches the position limit in a particular underlying then the member shall be permitted to take only offsetting positions (which result in lowering the open position of the member) in derivative contracts on that underlying.

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A smarter method to hedge the risks from the movements of the underlying price is to directly link the amount of bought (sold) underlying asset to the Delta value of the option position in order to form a Deltaneutral position. Account for the us traders.

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