Don’t be surprised when unstable trades blow up

Quick Summary:

One of the ironies of the burst of volatility that just blindsided financial markets is its inevitability.

A “Value at Risk” shock of this magnitude, essentially a jump in the maximum loss an investment can sustain over a period of time, can destroy portfolios and bring down funds.

The investor needs to exit the trade before the inevitable spike in volatility sparks a wave of short covering that blows up the trade.

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Article Details

Author / Journalist: JAMIE MCGEEVER

Category: EconomyBusiness

Markets: MalaysiaJapanUnited States

Topics: CarryTrades EconomicUncertainty GlobalMarkets /Business/Insight Commentary HedgeFunds LeveragedBets ForexTrading MarketVolatility FinancialRisk

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-08-09 @ 00:00:00 (10 hours ago)

News Timezone: GMT +8:00

News Source URL: thestar.com.my

Language: English

Article Length: 945 words

Reading Time: 6 minutes read

Sentences: 50 lines

Sentence Length: 19 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © The Star

News ID: 21992451

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About The Star

Main Topics: EconomyBusiness

Official Website: thestar.com.my

Update Frequency: 67 posts per day

Year Established: 1971

Headquarters: Malaysia

News Last Updated: 57 minutes ago

Coverage Areas: Malaysia

Ownership: Independent Company

Publication Timezone: GMT +8:00

Content Availability: Local / Regional

News Language: English

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API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #22

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