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Navigating Algorithmic Execution and Derivatives Trading
This chapter explores the intricate challenges of executing large trades in algorithmic trading, emphasizing how market awareness can impact execution conditions. It contrasts the execution strategies employed by sophisticated funds versus less advanced ones and introduces the popular 'wheel' strategy for options trading. Additionally, the chapter analyzes the relationship between derivatives trading dynamics, particularly options, and market volatility, while highlighting the risks involved in trading highly volatile assets.