What is Volatility Trading?

J Pan outlines the importance of implied volatility, “According to the CFA institute, implied volatility is a measure of the expected risk with regards to the underlying for an option. The measure reflects the market’s view on the likelihood of movements in prices for the underlying, having the tendency to increase when prices decline and…

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Bower explains what currency hedging is, Put simply – currency hedging means taking exchange rate risk out of the equation. Exchange rate risk is the potential for an investment not priced in Australian dollars to lose value due to currency fluctuations. For example, say if you bought five shares of Apple Inc. from your broker…

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Valuewalk reported that investment funds are investing in gold, “Gold bullion prices continued to rally in August, driving strong performance in gold stocks, although that strength wasn’t enough to pull Sturgeon Capital into the green for the month. The fund was down 3.09% for August, bringing its year-to-date returns to -5.1%. Difficult returns in Kazakhstan…

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Reuters reported that catastrophes will drive insurance rates higher, “Big insurance losses from hurricanes, wildfires and other natural disasters over the past two years are set to push reinsurance renewal rates higher in January, ratings agencies said. Insurers are increasingly concerned about the impact of bad weather linked to climate change, with an increase in…

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CNBC recently reported a heavy loss by a hedge fund, “One of the better-performing hedge funds reportedly took a heavy loss last month, as a big bet on Argentina’s economy went sour. Autonomy Capital lost about $1 billion, or about 23%, in August after taking a large position in Argentina’s 100-year bonds, The Wall Street…

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Lessons learned from trading were shared by zacks.com “After all these years, my experience has taught me to accept that the market is a living breathing organism. It is not against you; it is not out to get you; it just exists as a marketplace where prices go up and down based on a wide…

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Forbes recently predicted that 2020 will be the most volatile year in history “A far bigger one is the looming 2020 US campaign. None of the possible outcomes are particularly good. I think the best we can hope for is continued gridlock. But between now and November 2020, none of us will know the outcome. Instead, a…

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Warren Bufffet is reportedly increasing his cash position: “Warren Buffett’s mountain of cash may be a warning to investors that stocks are overvalued and that a crash is around the corner. Berkshire’s cash pile is worth nearly 60% of its $208 billion portfolio of public companies. In the past 32 years, the group held more…

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