Sunday, July 29, 2007
Exchanges
Just a little snippit of life on the floor, and the misunderstandings people have.
For example, the idea that professional traders collude to drive up stock prices. It's just as likely that a pro is short, say, the S&P 500, so any rise in stock prices would hurt him. Or that he's direction neutral, but he's long volatility, so he wants variation. Or that he's direction neutral, but short volatility, so he wants prices to stay where they are. Just saying. If you're going to hold forth on a topic, even on blog comments, you should do some research.
For example, the idea that professional traders collude to drive up stock prices. It's just as likely that a pro is short, say, the S&P 500, so any rise in stock prices would hurt him. Or that he's direction neutral, but he's long volatility, so he wants variation. Or that he's direction neutral, but short volatility, so he wants prices to stay where they are. Just saying. If you're going to hold forth on a topic, even on blog comments, you should do some research.
Labels: economics
