With cryptocurrency futures, the concept for the market will remain the same — hedging cryptocurrencies
against the volatility of future prices.
ODUWA COIN is a Nextgen cryptocurrency that offers indemnity and insurance
against the volatility of the cryptocurrencies listed on the platform.
But perhaps the most important reason to continue to hold bonds is that, rising rates or no, bonds still fulfill what for long - term investors is their most important function: They act as a bulwark
against the volatility of the stock market.
Provide investment stability to help buffer
against the volatility of the stock market (not a bad idea these days).
But there are several reasons to diversify crops, such as hedging farm revenue
against the volatility of cocoa prices.
Crypto assets provide a hedge
against volatility of cryptocurrencies and bring the liquidity of global markets into crypto.
Not exact matches
The debut
of the first futures contract on an established exchange was relatively orderly, in contrast to expectations
of high
volatility and traders short selling, or betting
against, bitcoin.
The brokerage also said clients will not be able to take short positions, or bet
against bitcoin futures, «due to the extreme
volatility of cryptocurrencies.»
On Monday, Cramer wanted investors to keep an eye on the risky, leveraged funds that enable traders to bet
against volatility, defined as the amount of uncertainty in the size and direction of changes in the market and most commonly tracked by the CBOE Volatility Inde
volatility, defined as the amount
of uncertainty in the size and direction
of changes in the market and most commonly tracked by the CBOE
Volatility Inde
Volatility Index, or VIX.
Of course, if you want a shield
against stocks»
volatility, there are more straightforward options.
«A lot
of these guys are going to pull the rip cord and get out
of the trade when the price goes
against them with all this intraday
volatility,» said S3 Partners» Head
of Research Ihor Dusaniwsky.
Margin accounts are a big part
of buying and selling futures contracts, which allow buyers and sellers to protect themselves
against price
volatility.
Wilmot runs through a bunch
of investment strategies that might see renewed interest in light
of these financial conditions, ranging from equity funds that offer some sort
of hedge
against volatility to big - data - driven quant funds.
But that
volatility, as Ghosh likes to note, is the upside
of the integrated nature
of the company, which gives it a continued hedge
against the differential in world oil prices through its downstream and midstream assets — on the midstream side, Husky operates a 2,000 - kilometre crude - oil pipeline system, and its downstream operations include upgrading and refining crude oil, and marketing gasoline, diesel, jet fuel, asphalt and ethanol in Canada and the United States.
While diversification does not ensure a profit or guarantee
against loss, a lack
of diversification may result in heightened
volatility of your portfolio value.
While diversification does not ensure a profit or guarantee
against loss, a lack
of diversification may result in heightened
volatility of the value
of your portfolio.
Uncertainty about the U.S. presidential race in the near term may produce periods
of volatility for the U.S. dollar, yet RBC maintains that the U.S. currency will post modest gains
against the Euro, Canadian dollar and sterling as markets look for a U.S. Federal Reserve policy rate increase in the first half
of 2017.
Factom will be using Tether as a hedging mechanism
against Bitcoin's infamous
volatility in the company's upcoming sale
of its Factom software.
Asset allocation and diversification may not protect
against market risk, loss
of principal or
volatility of returns.
For our part, Thursday was difficult, as our largely defensive holdings were clearly out -
of - favor, bank stocks (which we continue to avoid) shot higher on short covering, and option
volatility declined as investors abandoned the desire to defend
against losses.
The Strategic Growth Fund remains fully hedged, with the same «staggered strike» position we had at the 2007 peak, which strengthens our defense
against potential market losses by raising the strike prices
of our defensive put options, at a cost
of just over 1 %
of assets in additional put premium (which is relatively inexpensive with the CBOE
volatility index currently at about 17).
Oil - related revenue has dwindled since 2015 as a period
of low prices reduced interest from producers and consumers in financial instruments that offer protection
against price
volatility, said Amrit Shahani, research director at Coalition.
We live with considerable uncertainty about the sustainability
of the pattern
of relatively low risk premia and reduction in the cost
of insurance
against future macroeconomic and financial
volatility.
by Silvio Cascione, Sumanta Dey and Vuyani Ndaba (Reuters)- The U.S. dollar is likely to set new records
against emerging market currencies this year, although its climb may be slower than in 2015 and possibly hampered by more frequent bouts
of volatility, a Reuters poll suggested.
We see increasing U.S. actions
against China and other countries sparking bouts
of volatility but not derailing the benign economic and market backdrop.
For example, the benchmark
against which a stock's
volatility is compared can change based on preference or purpose
of comparison.
Given that much
of the
volatility and underperformance over the past three years is due to the strong U.S. dollar, money has poured into international stock ETFs that hedge
against the dollar.
Similar to U.S. National Park Service officials» prior preference for peaceful herds
of elks and an absence
of «risky animals,» some monetary policymakers maintained a bias
against market
volatility, and they perceive removal
of «unwanted
volatility» as beneficial to financial markets to inadvertently reduced markets» risk tolerance.
Subdued dollar trading and the quiet on bullion boards came
against a backdrop
of geopolitical worry and
volatility on financial markets: If the Fed fails to deliver a hawkish hike, gold is likely to find a bid with the focus returning to safe haven and diversification demand
Since then, developments in implied
volatilities of currencies
against the US dollar have been mixed.
Furthermore, weakness
of the euro and the British pound
against the US dollar, combined with market
volatility caused by ongoing geopolitical uncertainty, presents managers with additional stock - picking opportunities in the region.
Market
volatility has been historically low for months, and there is speculation that products that bet
against volatility are part
of what spurred Monday's meltdown.
On other note, you can actually reduce your risks with cryptocurrency pairs as well, and get exposure only to the relative performance
of two coins, and remove the generally huge
volatility of coins versus fiat currencies, like Ethereum's swings
against the Dollar on the chart above
CEO Tidjane Thiam told CNBC that investors who held shares
of XIV had bet
against at
volatility at their own risk.
Concerns that a possible rise in inflation in the United States could lead the Fed to increase the pace
of interest rate hikes has caused nerves on Wall Street, and American investment products that bet
against volatility seem to have contributed to Monday's stock rout.
Also implied
volatilities were larger for «out
of the money» options to buy renminbi, than for equally «out
of the money» options to sell the currency, thereby suggesting that the balance
of expectations was skewed towards an appreciation
of the Chinese currency
against the US dollar.
Going
against the grain
of popular belief, Mr Buffett sees
volatility and «old world» stocks as boons and frowns upon an over-diversified portfolio and excessive trading.
(HuffingtonPost) This
volatility is mainly attributed to growing demand
of bitcoins
against a limited supply, as well as current events that affect digital currencies.
If anything, the first few weeks
of the year have served as a valuable reminder that investing in public markets is inherently volatile and that our main defense
against that
volatility is to diversify our risk exposures by owning a variety
of asset classes and risk factors.
As pension funds, hedge funds and mutual funds recovered from the crisis, traders, portfolio managers and treasurers said in interviews with Global Finance that their exposure to derivatives is actually increasing as a means
of hedging
against further
volatility in the markets.
Against this background, we think that the divergences in the monetary policies
of the major economies are likely to become more apparent, which could increase pressure on some central banks and magnify market
volatility.
The other objective
of bankers advising the deal, the people say, is to make sure there is a high - enough volume
of shares traded to insulate the company
against extreme
volatility.
However, locking in a portion
of gains and instituting stop loss orders is a tactic I am employing to protect
against the increased
volatility across markets globally.
Scrambling to hedge their positions
against further losses, investors bid up the prices
of options, leading to the surge in the VIX, a gauge that measures the implied
volatility of near - term S&P 500 index options.
Against that backdrop, the MSCI U.S. Minimum
Volatility Index slightly lagged the S&P 500 for the first three quarters
of the year before roaring ahead to end 2015 at 16.5 %, compared to the S&P's 13.7 %.
For dairy producers and transformers as well as industrial consumers
of dairy products, the use
of derivatives provides significant benefits in mitigating
against price
volatility.
But Mr Helou is confident the co-operative's shift away from commodities, which now represents about 30 per cent
of its overall sales volume, would help as a cushion
against further
volatility.
He noted CBN's periodic intervention in the forex market reduced exchange rate
volatility over the last two quarters
of 2017 and businesses showed improved liquidity
of forex and stability
of naira
against the dollar.
The government had by this point built up large reserves
of foreign exchange to buffer
against potential
volatility, reduced annual inflation from 31 per cent in 2004 to 7,5 per cent a decade later, and established
of a sovereign wealth fund to help diversify the economy.
Chairman Jan du Plessis said «Our business has demonstrated considerable resilience
against a backdrop
of continuing market
volatility.