Sommario
Cosa significa copertura in Borsa?
Operazione realizzata da un soggetto che intende ridurre o annullare il rischio derivante da una posizione aperta.
Cosa sono le coperture finanziarie?
Nel mondo finanziario una copertura è un modo per limitare eventuali perdite derivanti dalle variazioni di prezzo. Negli ultimi anni, i derivati come future e opzioni sono stati molto utilizzati come coperture.
How do market makers hedge their exposure?
If a market maker got filled at the bid 50 times in a row, he would have a pretty large long bias in the market. Since market makers are not supposed to speculate on directional movements of the market, how do they hedge their exposure? Obviously a way would be to take an offsetting position in a derivative, such as options or single stock futures.
How do prudent market making agents hedge crash risk?
Finally, prudent market making agents also use derivatives in the underlying or correlated instruments to hedge crash risk. If you are looking for more information, there is ample academic literature on the subject. Terms that will assist your search include “liquidity provision”, “adverse selection”, “automated trading”, “algorithmic trading”.
How is the equity market making landscape changing?
The equity market making landscape has changed drastically in the last few years. Decimilization, lack of liquidity, ECNs, and the rise of algorithmic trading have eliminated most traditional market making positions. In most cases, the quote you see comes from an automated agent using one or more algorithms to provide or remove liquidity.
Why are there no traditional market making positions anymore?
Decimilization, lack of liquidity, ECNs, and the rise of algorithmic trading have eliminated most traditional market making positions. In most cases, the quote you see comes from an automated agent using one or more algorithms to provide or remove liquidity.