Thorsten Wegener On the Simplest Way to Understand Option Markets
Macro Hive Conversations With Bilal Hafeez
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What Is Volatility?
Wes Clark: Volatility is nothing more or less than the forecast of all market participants, who are always human. We tend to do the same things, mostly rational and then we're irrational,. And vol ity is one way of measuring this. When something is more likely that everything could happen, it gets more expensive. If everybody is panicking, volatility will be higher. It's like a nicest insurance company in the world - you've built the nicest house in the world by buying into their system. The odds have come downh so far but they can go back up again. Or when the other way round happens, nobody wants to buy anything else. That's fair
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