When all of us feel that there is no risk, risk happens. Like all of us were sure that the markets will go from 21000 to 25000 it went to 9000. Market is a great humiliator -and exactly when you feel you have understood it all, it slaps you. At times it hits you in […]
Many people who trade and lose a lot of money do not understand many risks..some of them are: 1. Running out of money! If you have no ability to take delivery – which means you have to cut position, your bank balance and your stomach balance both are important. If you lack either one of […]
Imagine a pyt comes to you and is selling you a complex currency and interest rate derivative. Your Director Finance and CFO do not understand the product after 3 rounds of explaining. So the pyt goes to a rating agency and gets a certificate saying this product is “Category B”. Now the ego of the […]