It seems another form of St Peterburg´s paradox, right?

Sure? Can you prove it?

From a junior-junior guy:"I will buy and sell at the same time the Bund Future. Hence, either one or the other will win".

Too in a dealing room, conversation between two dealers from different trading desks:- Is this really mid-price?- Yes, mid-price from my side

Anybody read this book by Jim Rodgers?

I guess LTCM is one of them. More certaily, it could have been a great catastrophe, had the Fed not taken some measures (see the related threads).

BPV = sensitivity wrt to parallel shift of the curve. Aprox. the sum of the individual sensitivities.

<t>In interest rates we have a further dimension, hence you can think as if we have an underlying in each point of the curve. Hence, the delta shows the different sensibilities of your position wrt individual buckets. Although you should hedge every backet, in practice you just hedge the more releva...

TextHave you seen this page of a trader and chess player? Interesting.

QuoteEven simpler, PWOQF p109 shows that a binary/digital call has value e^{-rT}N(d2)It is better to use the aproximation that Val wrote: Digital_Call(S,K,r,T)=Cash_Amount*[Call(S,K-0.5*epsi, vol1)-Call(S,K+0.5*epsi, vol2)]/epsi. If not, you are not taking into account the smile.

<t>It seems reasonable what you say, at least theoretically. But my feeling is that with averaging I can lower my risk. Specially when my average price is going to be compared to an unknown strike which is going to be the maximum of a period. My risk begins in the lookback period, 10 days from now o...

Everybody agree?

More insights from the forum? I do not think there are only two guys with opinion.

Nonius and FDAXHunter, are you traders?

<t>QuoteHedging is for pussies, man. Don't hedge that shit, just let it run.Ok, you may lose 3 million eur if you are not lucky with this "shit". You are fired.QuoteI would think, now, you have a price today....if you don't hedge today, you are exposed, today. Luigi, what's your opinion? You are exp...