(Bloomberg) -- Greater fluctuations in the prices
of stocks, bonds and currencies will likely erode profits from
one of the most popular investment strategies in the foreign
exchange market, according to Goldman, Sachs & Co.
A Goldman index that tracks three-month implied volatility
on options on eight major currency pairs is at 6.03 percent,
after reaching 5.78 percent last week. The record low, set in
November, was 5.54 percent. Implied volatility, which traders
quote as part of setting options prices, indicates expectations
for future price swings.
Read more at Bloomberg Currencies News
of stocks, bonds and currencies will likely erode profits from
one of the most popular investment strategies in the foreign
exchange market, according to Goldman, Sachs & Co.
A Goldman index that tracks three-month implied volatility
on options on eight major currency pairs is at 6.03 percent,
after reaching 5.78 percent last week. The record low, set in
November, was 5.54 percent. Implied volatility, which traders
quote as part of setting options prices, indicates expectations
for future price swings.
Read more at Bloomberg Currencies News
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