This is a trend - following strategy as periods
of high volatility usually coincide with bad returns.
Not exact matches
a bond where no periodic interest payments are made; the investor purchases the bond at a discounted price and receives one payment at maturity that
usually includes interest; they have
higher price
volatility than coupon bonds as a result
of interest rate changes
When
volatility is relatively
high options prices will
usually be slightly
higher, so out
of the money put options should be a little more expensive than during times
of lower
volatility.
«If we start to see equity markets selling off and
volatility moving
higher, the way that global capital flows move is there's
usually repatriation
of Japanese investors having overseas investments where they bring that money home, and U.S. investors also tend to bring their money home,» he said.
Historically, a broadly diversified portfolio
of stocks (now easily obtained with one or two index mutual funds) has
usually provided much
higher long - term returns than bonds or cash, but with inevitable, dramatic ups and downs (
volatility) that can be very stressful.
In this chart, we focused on the beginning
of a FDAX futures session when
volatility was
usually high.
Often referred to as «variation margin», margin called for this reason is
usually done on a daily basis, however, in times
of high volatility a broker can make a margin call or calls intra-day.