Volatility Arbitrage is a trading strategy that attempts to capitalize on differences between the expected volatility of a financial instrument and its implied volatility derived from options pricing. Understanding Volatility Arbitrage Volatility arbitrage is based on the premise that there can be disparities between anticipated market behavior and the prices of options. Traders executing this … Continue reading ""| Disfold Blog
Volatility measures how much the price of a security, market, or index fluctuates over time. It serves as an indicator of risk, with higher volatility reflecting greater uncertainty regarding future price movements. Understanding Volatility Volatility is a critical concept in finance and investment. It indicates the degree of variation of a financial instrument’s price from … Continue reading ""| Disfold Blog
A technical indicator is a mathematical calculation based on the price, volume, or open interest of a security, used by traders to forecast future price movements and market trends. Understanding Technical Indicators Technical indicators are essential tools in technical analysis, helping traders make informed decisions about buying or selling assets. They analyze historical data to … Continue reading ""| Disfold Blog
In the financial context, a stock represents ownership in a corporation and constitutes a claim on part of the corporation’s assets and earnings. Each share of stock is a proportional stake in the corporation’s assets and profits. Stocks are also referred to as “equities” or “securities.” Key Features of Stocks Ownership: Shareholders are effectively owners … Continue reading ""| Disfold Blog