It does make sense to hold index futures long term because of their leverage. If let's say their leverage is 1:10 & given that historical average...
Buy options in the opposite direction. It's called butterfly.
Options are already hedged in the sense that your dowside risk is limited.
http://www.cmcmarkets.com/us/eng/forex/cmc_fx_service.jsp
Remember that shoring a stock is very risky. Imagine what happened to your money if you've shorted Microsoft 10 years ago.
Don't know what you mean. If you bought some stock from some other guy it does not mean at all that the guy lost his money on this deal. It...
Try bloomberg radio 1130 AM or on Bloomberg website.
LOL.
I meant what time to expiration do your puts have?
If I were you I would take the path of the investor: it's as much profitable & a lot less stressful.
Another hedging tool is the stop losses. By the way how far out are your puts?
It depends on your projected position size & a holding time of the trades. The smaller is a holding position time the bigger might be your exposure.
If everybody plays hands correctly the mathematical edge is 0. That's fact. Meaning nobody wins & nobody loses (with no rakes) You said that your...
Yes, poker is also about edge. But when everybody plays hands correctly edge is equal to 0 and money just exchanging hands. So in the game like...
I don't understand how people can make money playing poker. People can fold in poker and a good hand goes to waste. The player's edge should be so...
Interest rate difference.
Trader god, I have one more question. Because I am a carry interest trader so I would like to know whether positive interest pairs like USD/CHF,...
Thank you trader god. What it basically tells me is that carry interest is dependent on the broker and does not have to be exactly the same, right?
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