Eurex Intraday Volatility Forecast

What happens if even hedging, it loses?

 

If you lose you lose. Every business has losses.

 

What i meant to say is if the loss is small compared to not hedging. It looks like "picking up pennies in front of a steamroller"

 

The margin requirement on a spread is a lot less than on an outright.

Instead of being in front of the steamroller, follow behind.

 

folowing behind is buying a one tick option as hedge e.g credit spread?

 

What is the steamroller?

 

Losing all my capital

 

The steamroller is trend. Selling options has been called picking up quarters in front of a steamroller. What should you do?

 

Buy options as a protection?

 

How do you define trend?