What is the “edge” you have in the markets?

M

masterjee

Active Member
#32
#32
CreditViolet said:
Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity
Click to expand...
Thanks CV - point taken. But one needs to be clear the difference between arb and hedging. Probably for the sake of terminological and semantic clarity some one in the forum should define the difference and similarity between these two operations.

Unless of course it is all semantics

regards

m
 
sudoku1

sudoku1

Well-Known Member
#33
#33
Re: What is the edge you have in the markets?

hari09omkar said:
And I thought the Ma was Shashi Kapoor's and the Bangla,Building,Car,Bank Balance were Bachchan's.
Click to expand...
AMIT: mere paas gaadi hai ,banglaa hai , paisaa hai .....
SHASHI:mere pass bhi gaadi , bangla , paisaa hai....
AMIT: HAING.....:confused:.....TO PHIR MAA KISKE PAAS HAI.....?????:D
 
A

aca_trader

Active Member
#34
#34
Re: What is the edge you have in the markets?

masterjee said:
....cannot understand your logic or argument.... (maybe later)....
so called hedge funds are doing everthing except hedging.
most of them are chasing momentum..ie directional calls backed by goblygook formulae...which probably their handlers cannot understand

why? real hedging is boring.

regards
m
Click to expand...
Hedge funds derive their common name from the first such private fund which was 50% long & 50% short in the market and hence was called a hedge fund.
However, Hedge funds are only an euphemism now and basically they are closely held, closely invested funds with nothing to do with hedging; neither the SEC regulations governing them nor the exchanges they trade on require them to do compulsory hedging. The investors who are eligible to invest into such private investment pools (Accrediated Investors) are well aware of the fact. The compulsory hedging requirement is applicable only to market makers and specialists (This breed does not exits in Indian Markets).

Regards,
--Ashish
 
A

aca_trader

Active Member
#35
#35
Re: What is the edge you have in the markets?

CreditViolet said:
Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity
Click to expand...
Stat Arb, most of the time, like volatilty arb or takeover arb is only partial hedge and sometimes even that partial hedge may not work in extreme market conditions. Most of these stat arbs are much of mean-reversal directional bets.
 
C

CreditViolet

Guest
#36
#36
aca_trader said:
Stat Arb, most of the time, like volatilty arb or takeover arb is only partial hedge and sometimes even that partial hedge may not work in extreme market conditions. Most of these stat arbs are much of mean-reversal directional bets.
Click to expand...
But sir, the question was not whether it was partial or whether it doesnt work. The question was whether some HF's are doing any hedging at all, which they were.
 
T

trader111

Active Member
#37
#37
Re: What is the edge you have in the markets?

Not true. Lot of funds doing Stat Arb have been doing very well consistently. Just because they are not in the news doesnt mean they dont exist. Just like traders, funds that actually make money tend to be very secretive, quiet and shun publicity
Click to expand...
that supports my previous posts :)

On NYSE, program trading currently amounts to around 50% of daily volume. Lately algo traders incorporate order book based strategies. Since they have a far advanced execution platform, it is an obvious peril to daytraders edge.

NSE daytraders will feel the same pinch sooner or later.
 
You must log in or register to reply here.
Thread starter Similar threads Forum Replies Date
C EA on FP markets (ECN broker) Brokers & Trading Platforms 0
S Currency and Stock Markets. Daily Insights Fundamental Analysis 312
R An opinion about World Markets Introductions 1
Forextamil Putting the Power of Confluence to Work for Trading Markets- Part2 Beginners Guide 0
N Using foreign income to trade foreign markets Taxation Matters 0

Similar threads