O'Reilly logo

Binary Options: Fixed Odds Financial Bets by Hamish Raw

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

10. Hedging Binaries

10.0 Introduction

In this day and age one may be excused in being rather confused as to what is and is not a hedge based on the activities of so-called ‘hedge funds’. If ever the nomenclature of a financial market operator was misapplied then this is it. Travelling back through the years it is possible to highlight hedge funds that were ‘hedging’ one country’s government bonds against a different government’s bonds on the basis that yields were misaligned. Views were based on theoretical concepts such as purchasing price parity, cost of living indices, et al, determining theoretical bond yields and thereby supposedly providing hedge funds with profit generating opportunities. The losses incurred by one infamous fund ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required