Category: Volatility Fizz
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Gamma token: what is gamma and how it works in crypto markets
Understanding Gamma: A Deep Dive into Dynamic Presentation Tools What Is Gamma and Why It Matters Gamma is a modern presentation platform that redefines how we communicate complex information interactively and visually. Unlike traditional slide-based tools like PowerPoint or Google Slides, Gamma offers fluid, web-native documents that combine the structure of presentations with the flexibility…
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Funding cost sensitivity: how small changes in rates affect large trading positions
Funding Cost Sensitivity: How Small Changes Impact Big Positions In 2025, as global macroeconomic volatility remains elevated, understanding funding cost sensitivity has become a critical factor in managing capital-intensive strategies. With interest rates no longer anchored near zero and quantitative tightening continuing across major economies, even marginal shifts in funding costs can radically alter the…
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Options skew and correlation explained through their hidden market connections
Understanding Options Skew: A Foundational Concept Options skew refers to the uneven distribution of implied volatility across different strike prices of options on the same underlying asset. Typically, in a perfectly efficient market, implied volatility would be symmetrical around the at-the-money (ATM) strike. However, in reality, traders often observe a skewed volatility surface, where out-of-the-money…
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Volatility estimation in real-time using fast and efficient techniques for accurate results
Volatility Estimation in Real-Time: Techniques for Speed Volatility estimation has always been a cornerstone of financial modeling, risk management, and algorithmic trading. But with the explosion of high-frequency data and the ever-shrinking latency windows in modern markets, speed is no longer optional — it’s survival. In this article, we dive into the evolving landscape of…
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Funding flows impact market dynamics and reveal key drivers of financial behavior
Understanding the Pulse: Why Funding Flows Matter In financial markets, money doesn’t just talk—it moves. Funding flows, or the movement of capital into and out of markets, serve as a powerful indicator of investor sentiment and broader economic trends. Whether it’s billions pouring into tech startups or capital flight from emerging markets, these flows shape…
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Weekend liquidity in trading: essays on navigating thin markets effectively
Understanding Weekend Liquidity Gaps: Anatomy of a Thin Market Trading over the weekend remains a complex frontier in financial markets. While traditional equity markets shut down Friday afternoon, cryptocurrencies and certain over-the-counter (OTC) instruments maintain 24/7 availability. However, the key characteristic of these weekend markets is their thin liquidity — low volume, wide spreads, and…
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Skew vs.. Smile: choosing the right volatility metric for accurate market analysis
Understanding the Basics: What Are Skew and Smile? In the realm of options pricing, implied volatility (IV) is rarely symmetric. Two primary metrics—volatility skew and volatility smile—help traders interpret these asymmetries. Volatility smile describes a U-shaped curve where deep in-the-money and out-of-the-money options have higher implied volatilities than at-the-money options. In contrast, skew (particularly “volatility…
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Volatility timing models explained for effective use in daily financial briefs
Understanding Volatility Timing: Why It Matters Volatility timing refers to the strategic adjustment of portfolio risk exposure based on the forecasted or observed market volatility. While traditional asset allocation assumes static risk levels, volatility timing models aim to dynamically adapt to changing market conditions. This approach has gained traction among hedge funds and institutional investors…
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Weekend liquidity management plans for traders: effective strategies for stable results
“`html Understanding Weekend Liquidity in Financial Markets “` When Friday’s closing bell rings, many traders breathe a sigh of relief — but experienced market participants know that the weekend poses a unique set of liquidity challenges. Weekend liquidity refers to the reduced market activity and thinner order books that occur from Friday evening to Sunday…
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Volatility shock absorption strategies for managing quick market dips and rallies
Understanding Volatility Shock Absorption in Modern Markets Volatility in the Age of Algorithmic Acceleration In 2025, volatility shock absorption strategies have become essential tools for active traders and institutional investors alike. With algorithmic trading and high-frequency systems dominating price action, quick dips and rallies are no longer anomalies—they’re expected patterns. These sudden price dislocations are…