July 3rd, 2009 by Tyler Durden
The chart below indicates that while the market is exactly where it was in early December 2008, the VIX has droped by almost 60%. And traditional theories that suggest that the corporate risk is merely being offset to sovereing don’t seem to hold much sway- US CDS is again trading at a ludicrously tight level. So the question arises: just who is selling 1 month forward vol, and just how are they hedging effectively. Granted, one could make the argument that risk was priced at “total chaos” levels in November and December, the market was running even more like a headless chicken in March and breaching lower lows, yet the VIX was unable to even threaten penetrating prior resistance levels.
Alternatively said, even with net option open interest increasing, the VIX shows barely any indication of widening. Who is writing these options? Who is buying these options? Why (for both camps), and what do they know (don’t know) that we don’t know (know).
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July 3rd, 2009 by Albert Schmidt
If you’ve been trading currencies for any length of time you know that the most important thing is to keep executing your trading system in a disciplined way.
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July 3rd, 2009 by Dr. Robert Ph.D.
Forex trading can be pretty risky. Unlike mutual funds and bond funds, foreign currencies can be pretty volatile. Currencies fluctuate in value several times a day.
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July 3rd, 2009 by Dr Robbie Co
Forex is undeniably viable for business people. However, there are also those who do not succeed in Forex Trading because they are not prepared
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July 3rd, 2009 by "Currency Trading" - Google News
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July 3rd, 2009 by admin
Bollinger bands are designed to contain the price action (volatility) about 95% of the time. However, it’s the other 5% of the time that we want to capitalize on.
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July 3rd, 2009 by admin
Volatility - Part of the price of the option contract is due to the volatility of the contract. The more volatile a currency, the more likely a “wild swing” could make it to the strike price and well past it.
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July 3rd, 2009 by admin
I expect the rupee (INR) to continue to strengthen. The 2009 current account deficit of 2.6% of GDP was lower than market expectations of 3.5% of GDP, due to the rapid fall in imports
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