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"Volatility can make your P&L smile"

Tuesday, September 04, 2007

Most prudent traders will always be long “the wings” and long “teenies” which means having long positions in far out of the money options that are nearly worthless but can be become very valuable once markets start to become erratic..

A SQUARE :: 04Sep07 "Volatility can make your P&L smile"
Category	Volatility
Faculty	Peter Van Kleef
Expertise	Volatility
Author	Sona Blessing
Discipline is the key here. Sometimes trading very diverse assets or products may seem to offer exceptional margin. But margin needs to be scaled by risk. If one loses the discipline to do so - it's usually the first step over the cliff
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