Buying and Selling Volatility — a trading book that describes some
really interesting type of trading — a volatility trading. It might
be not very useful for Forex traders, because it involves the
derivative trading (and it’s not very popular with Forex, spot trading
is much more popular), but it will be interesting and useful to other
traders and investors who don’t limit themselves to Forex only.
Traditional financial trading consists of buying and selling certain
instruments and closing the position when the price of the instruments
reaches a desired profit level. All that such trader needs is the entry
price and the exit price. The difference (positive or negative) is the
trader’s profit or loss. Volatility trading offered by Connolly Kevin
is different. Volatility trader buys or sells volatility through
a complex system of hedged options and other derivative. The benefit
of such method is that one can earn successfully on volatile markets
without even paying attention to the entry and exit prices of the given
instrument.
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