You mean bond payoffs are non-linear?
Thanks. This was informative.
Ok, but do you know of any structured note that embeds an exotic option(e.g like a lookback option) and is available at retail?
That’s true I forgot about cash. Also yeah, exotics are very advanced topics.
Well, can I really construct any payoff I want? Take for example: I think it would still be impossible to construct a lookback option(fixed...
At the end of the day I think they are all variations of the standard options. That’s what I got from your reply. The problem is most or all of...
Options are the only derivative instruments I know of that have an asymmetric payoff(risk is capped). Other derivatives and asset classes I know...
I am not trying to close my trades at mid price actually. I am still closing my trades at the bid or ask price but only when mid price is reading...
Are there retail forex brokers/platforms(none U.S) that let you set take-profit and stop-loss targets at mid-price(or mark, last price) rather...
No, a consistent trading range value. The current value of the GBPUSD daily ATR is about 125 pips. However, that 125 pips might have come about...
In Summary: I used to think a stock is volatile, like assuming stock X above has trading range instead as: 2.1, 7.2, 5.5, 4.5 e.t.c because of the...
I have 2 questions: Question 1: Is it possible that there exist a commodity(or any other asset of any type) with trading range(either daily,...
I don't think it is out there to be traded, but you never know. I just made it up to get an estimate of the probability of something that complex...
@taowave Yes, It is sort of a hedge trade if certain rare conditions occur, not the main trade. It is just theory, I was just thinking of complex...
@destriero Yes of course no chance of this getting traded. Let's say an intellectual exercise for now.
@taowave It should be mathematically because the probability of such an event occurring is quite small. And small probability means cheap...
@destriero the point is, because of complexity of the pathway, buying it as single option, I could have a return over 10x my risk: now this can be...
You’re right. The complexity is to much. @destriero
Haa, yes my mistake. Thanks for the correction.
Yes, Something like that.
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