Long Straddle: Making profits in highly volatile conditions.

Frequently sought by some investors and often avoided by many others, volatility represents how much and how quickly the value of a security or market fluctuates over a period of time. Market variations express the risk to which a security is exposed and, depending on the investment strategy and risk profile, volatility might represent an…

Is Short Selling a Dangerous Game?

One of the most debatable topics when it comes to investing strategies is short selling. When in principle there is nothing wrong with short selling, policymakers and financial regulators remain sceptic and suspicious with regards this market practice given abusive market practices and the potential risks involved. Often perceived as highly risky strategies, short sell…

The most common hedge fund strategies

Hedge funds are probably the most attractive investment in the financial industry, since a myth has been created around their unbelievable returns and performances. The first hedge fund was set-up in 1949 by Alfred Winslow Jones and its name derived by the word hedging which means managing risk. Although now the definition is inappropriate. At…