Traders Face Higher Costs to Hedge Risks in Markets from Stocks to Gold

Reported 3 days ago

Risk premiums for options are rising across various assets, including stocks and gold, due to lower market volatility despite growing market swings and uncertainties. Traders are paying more to hedge their positions, particularly in gold, as geopolitical factors and economic conditions push investor demand and influence options pricing. This trend has led to heightened volatility in individual commodities, while overall market indices remain relatively stable.

Source: YAHOO

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