How to define a Stop Loss

Download PDF Introduction One of the most basic tools used by traders to manage risk is a simple order given to a machine, the stop-loss order. Despite being accessible to all retail traders through their online brokers, it is often neglected or misused. In the first part of this article Read more…

IPOs Volatility and Stabilizing Tools

Download PDF IPOs volatility Initial returns of initial public offerings are usually large, averaging 15.1% over the 1965–2004 period (excluding the dot.com bubble interval that would further boost IPOs returns). For investors that can buy IPOs at the offer price, IPOs are a good short-run investment. However, we should care Read more…

The Disruption Of The Highly Improbable

Download PDF Introduction  Once again, we are approaching the end of the year, but this time, perhaps more than ever, the takeaways to bring home look exceptionally valuable: living in a world full of uncertainty due to the spread of COVID-19 pandemic represents indeed an increasingly demanding challenge for market Read more…

Flirting with Variance

Download PDF Introduction Variance swaps are OTC derivatives that allow investors to get direct exposure to the volatility of an underlying product, such as stock indexes, exchange rates and other asset classes. They initially gained popularity during the early 2000s following the advances in derivatives pricing theory. Their pure exposure Read more…

Volatility Play on the Hidden Gold-Yuan Peg

Reserve Currencies A reserve currency is defined as a currency held by government for international payment purposes. The most important usages are: Repay back international debt (generally issued in reserve currencies) Defend the domestic currency against depreciation Improve the government credit rating Reserve currencies are many. The IMF chooses the Read more…