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A Retrospective on the First 100 Episodes of the Alpha Exchange

Alpha Exchange

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How the Market Structure of the Futures Markets Can Sow the Seeds of Their Own Demise

Vix e t n blow up was fascinating i so many ways. And the manner in which carry trades can sow the seeds of their own demise is certainly relevant here. The size that those had got into required them to transact in a size that was basically three x what would have been available on the futures market. They might exist in physics, but not in finance. We don't get forty five degree return lines. But there are significant corollaries to how the beliefs of market participants are shaped by what we observe.

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