{"version":"1.0","type":"card","id":"80decbd3-2fcd-4771-9852-eaba27e69f3e","url":"https://stacklist.com/card/80decbd3-2fcd-4771-9852-eaba27e69f3e","title":"Limited Risk — What It Actually Means in the IC Options Glossary","source_url":"https://investmentcurrent.com/options-trading-glossary/#L","note":"IC's glossary defines limited risk as a concept where an option buyer's loss can be no greater than the premium paid for the contract — a structural protection that distinguishes options from other leveraged instruments. In practice, the IC method is designed to keep positions inside this limited-risk structure wherever possible, which is why it's the foundation of trading approaches for older bands where capital protection takes priority. Understanding this protection before you trade is part of building a real risk framework.\n","image":{"url":"https://ucarecdn.com/42140ccb-18b8-4b77-bd25-471326bb05ff/","alt":"Limited Risk — What It Actually Means in the IC Options Glossary","width":1080,"height":1080},"stack":{"id":"dfa09912-c92a-475c-bc3a-afb0e0fa7089","title":"Risk Management & Building a Trade Plan","url":"https://stacklist.com/stack/dfa09912-c92a-475c-bc3a-afb0e0fa7089"},"created_at":"2026-06-02T13:47:37.052Z","updated_at":null,"aco":{"summary":"Options Trading Glossary provides comprehensive definitions of key terms and concepts used in options trading, including basic definitions like ask price and asset, as well as complex trading strategies such as bearish spreads, bullish spreads, and butterfly spreads. The glossary covers market mechanics, pricing concepts, and various option strategies to help traders understand the language and mechanics of options markets.","tags":["options-trading","glossary","financial-terms","derivatives","trading-strategies","market-terminology"],"key_entities":[{"name":"Options Clearing Corporation","type":"organization","confidence":0.95},{"name":"call option","type":"concept","confidence":0.98},{"name":"put option","type":"concept","confidence":0.98},{"name":"strike price","type":"concept","confidence":0.97},{"name":"at-the-money","type":"concept","confidence":0.96},{"name":"butterfly spread","type":"concept","confidence":0.95},{"name":"Average True Range","type":"concept","confidence":0.92}],"classification":"reference","language":"en","confidence":0.85,"provenance":{"model":"claude-haiku-4-5","tool":"@stacklist/be@0.1.0","confidence":0.85,"timestamp":"2026-06-02T13:47:42.316Z"},"token_counts":{"approximate":11073,"cl100k":8886},"content_hash":"sha256:e84261b8f4e6488c7fad42769ccac4c6ba0164b1952bf2781aa2ed0137ec9201","acp_version":"0.2","body_available":true,"body_tokens":11073,"visibility":"public","agent_accessible":true,"status":"final"},"_links":{"self":"/api/public/card/80decbd3-2fcd-4771-9852-eaba27e69f3e.json","html":"https://stacklist.com/card/80decbd3-2fcd-4771-9852-eaba27e69f3e","md":"/api/public/card/80decbd3-2fcd-4771-9852-eaba27e69f3e.md","stack_json":"/api/public/stack/dfa09912-c92a-475c-bc3a-afb0e0fa7089.json"}}