🔵 Hedging
Investment banks and other institutions use call options as hedging instruments. Just like insurance, hedging with an option opposite your position helps to limit the amount of losses on the underlying instrument should an unforeseen event occur. Call options can be bought and used to hedge short stock portfolios, or sold to hedge against a pullback in...
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In the world of forex trading or trading of any financial instrument for that matter, many complex, technical and convoluted words are thrown around in conversations. Such jargon, though is relevant, tends to result in many blank stares especially among some of my peers, many of whom are not finance, economics or statistic fundi's. Many of them with...