Our experience, as early FX option market makers has taught us to be long as opposed to being short gamma, since extreme events or markets can wipe out option sellers..
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| A SQUARE :: 21Aug07 FX Series With Hathersage Capital – II |
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Category
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Foreign Exchange
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Faculty
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Bill Strack
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Expertise
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Foreign Exchange
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Author
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Sona Blessing
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A common mistake is to confuse objectives - managing risk or volatility versus seeking absolute return. Managing FX risk is formulaic and inexpensive. It is important to distinguish skilled absolute return FX managers from those hedging FX risk in non-base currency (international) assets.
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