Stocks and Bonds over Time

Despite a steady rise over most of the past century, the markets have seen plenty of turbulence.

Stocks and Bonds over Time

What did I say then?

"Hedging increases your risk" - an anonymous trader, p.311 on "Dynamic Hedging"

An aggressive derivatives house lost a considerable amount of money on a trade where they managed to buy “cheap” volatility with a series of knock-out options using rebates, in fact obtaining a strip of American binary options. They had a considerable “margin” in the trade, which means that the trade went home with some theoretical marks-to-market profits and thought highly of himself.