FOREX - Trends, Forecasts and Implications 2015(continued) - page 1907

 
Alexey Busygin:
I did not tell you about the pound and the euro. In addition, if your balance is in dollars, it will be a cross rate for you.

How do you know what my balance is, maybe it's in roubles.

It is clear that you do not understand anything about hedging.

 
denniss:

How do you know what my balance is, maybe it's in roubles.

It is clear that you do not understand anything about hedging.

Yes, that's why I won't tell you any more.
 
Alexey Busygin:
Yeah, I won't tell you any more about that.
So I was the one who suggested you talk about it, but you didn't say anything.
 
Vadens:

You're right, but can you imagine how much information you're giving me just to trust you? I will be moved by your videos, I will sell my house, thinking that I have reached the top of the Truth, next to the Creator, and I will take the money to deposit in a brokerage house. You are practically recruiting into a sect and imposing your religion. Maybe you are a DC fake. Therefore, it's not interesting and harmful for you to tell me the real cause-and-effect links and events where I got my hand, i.e. a quote in the terminal.

I propose to begin from the end, like in the principle of repairing electronics. I receive quotes from my broker. Broker gets basic quotes from the outside and receives crosses by mathematics. Question:

Who delivers the quotes to the Broker and in what form?

There are a lot of childish questions about futures, spot and pricing and much more.

I suggested everyone to type hrenfx into the search box and find its description of darkpools and the internal kitchen of banks and brokerage companies. If you don't need it, then all the more so for me - I've been through it all.

What's the point of knowing who supplies the catcalls? If I tell you that it's from the Globex central server, would that satisfy you? What good would that do you? What is the need for such knowledge. If it is a distributed network system with specific algorithms - what is this information for your trading? Quotes are a consequence, more important are the principles of pricing. Have you ever wondered why Yellen's speech took place on the day the annual futures contract expires? A coincidence? Then compare the dates of all major news releases to the expiration days of options and futures. And ask yourself why?

According to the newcomer, all the big hedge funds are run by morons. Except that he understands hedge in a peculiar way. Selling-buying two different instruments is just building a portfolio with equivalent equity and is not a hedge at all. It's not even a way to reduce risk because portfolios crumble and need to be revised and the state of the portfolio depends on the correlation of the instruments in it, which in turn also changes, and nonlinearly. If you can simulate the correlation - you are on top, because you can predict it and connect or disconnect managing influence in the form of the second instrument (or change the lot). And this is the cost and this will be the price for you. This is pricing, the price is the price of the hedge or the cost of arbitrage. The market is a self-regulating structure, seeking equilibrium through arbitrage and hedging.

The market is dominated by arbitrage - price, time, options, futures, etc. As soon as smart sees an arbitrage situation, it immediately implements it, hence the market balances out.

I asked one expert a question - what if the price of an instrument will be very different on different markets. And I got the answer - nothing will happen. So what is the point of having this conversation?

 
denniss:

........ Clearly you don't understand anything about hedging.

Alexey Busygin:
Yes, I won't tell you anything else about it.

So much for talking......... about hedging.

Shame on you guys! It turns out that in such a seemingly hackneyed term we understand nothing!

And VNG rubbed his hands together quite good, "Here! There! That's what I said!"

 
vng_nemo:

I have already suggested that anyone who wishes to do so should type hrenfx into the search bar and find his description of darkpools and the inner workings of banks and DCs. If you don't need it, then I don't need it - I've been through it all.

What's the point of knowing who supplies cotools? If I tell you that from the central server "Globex", will it suit you? What good would that do you? What is the need for such knowledge. If it is a distributed network system with specific algorithms - what is this information for your trading? Quotes are a consequence, more important are the principles of pricing. Have you ever wondered why Yellen's speech took place on the day the annual futures contract expires? A coincidence? Then compare the dates of all major news releases to the expiration days of options and futures. And ask yourself why?

According to the newcomer, all the big hedge funds are staffed by morons. Except that he understands hedge in a peculiar way. Selling-buying two different instruments is just building a portfolio with equivalent equity and not a hedge at all. It's not even a way to reduce risk because portfolios crumble and need to be revised and the state of the portfolio depends on the correlation of the instruments in it, which in turn also changes, and nonlinearly. If you can simulate the correlation - you are on top, because you can predict it and connect or disconnect controlling influence in the form of the second instrument (or change the lot). And this is the cost and this will be the price for you. This is pricing, the price is the price of the hedge or the cost of arbitrage. The market is a self-regulating structure, seeking equilibrium through arbitrage and hedging.

The market is dominated by arbitrage - price, time, options, futures, etc. As soon as smart sees an arbitrage situation, it immediately implements it, hence the market balances out.

I asked one expert a question - what if the price of an instrument will be very different on different markets. And I got the answer - nothing will happen. So what's the point of having this conversation?

I gave the man a simple hedging example, for first grade. If I start to tell him about complex, diversified, time-sensitive portfolios, I'm afraid he will get a heart attack on the first sentence, so I didn't develop the topic he doesn't understand just for his health.
 
Vadens:

No shame, guys! It turns out that in such a seemingly trite term we do not understand anything!

But we do!!!!

Vadens:

And VNG is rubbing his hands pretty good right now, "There! There! That's what I said!"

Do not demonize me. It makes me sad - verbiage instead of work.

 
vng_nemo:

I have already suggested that anyone who wishes to do so should type hrenfx into the search bar and find his description of the darkpools and the inner workings of banks and DCs. If you don't need it, I don't need it - I've been through it all.

What's the point of knowing who supplies cotools? If I tell you that from the central server "Globex", will it suit you? What good would that do you? What is the need for such knowledge. If it is a distributed network system with specific algorithms - what is this information for your trading? Quotes are a consequence, more important are the principles of pricing. Have you ever wondered why Yellen's speech took place on the day the annual futures contract expires? A coincidence? Then compare the dates of all major news releases to the expiration days of options and futures. And ask yourself why?

According to the newcomer, all the big hedge funds are staffed by morons. Except that he understands hedge in a peculiar way. Selling-buying two different instruments is just building a portfolio with equivalent equity and not a hedge at all. It's not even a way to reduce risk because portfolios crumble and need to be revised and the state of the portfolio depends on the correlation of the instruments in it, which in turn also changes, and nonlinearly. If you can simulate the correlation - you are on top, because you can predict it and connect or disconnect controlling influence in the form of the second instrument (or change the lot). And this is the cost and this will be the price for you. This is pricing, the price is the price of the hedge or the cost of arbitrage. The market is a self-regulating structure, seeking equilibrium through arbitrage and hedging.

The market is dominated by arbitrage - price, time, options, futures, etc. As soon as smart sees an arbitrage situation, it immediately implements it, hence the market balances out.

I asked one expert a question - what if the price of an instrument will be very different on different markets. And I got the answer - nothing will happen. So what's the point of having this conversation?

Thank you. I digest and digest, with the addition of information from other sources. In today's world, full of information, it is harmful to keep everything "inside", it is important to seek out and use it. I am grateful again.
 
Vadens:
Thank you. I digest and digest, adding information from other sources. In today's world, saturated with information, it is harmful to keep everything inside, it is important to seek out information and know how to use it. Thanks again.
What are you digesting? For the calculation of hedge potfels they use fairly complex formulas, and here he wrote just general concepts.
 

vng_nemo:

Don't demonise me. It makes me sad - instead of work, it's just verbiage.

I'll take it.
Reason: