Low Volatility = Tougher for Traders?

[Scataphagos]

Lol thanks but no desire to be a Master of the Universe..

No need for that. If you can get your assets and returns up to the point you feel like a success, that's a plenty good thing.

 

[qxr1011]

Hi,

I just heard on the news that Wall Street banks are cutting bonuses for their traders due to low return as result of low volatility.

I understand low volatility creates less premium for option sellers and less room for directional traders.

However, what other ways do low volatility create problem for traders?

Those are just called traders , in fact they are executioners of orders.

High volatility usually means less orders from the clients hence less commissions and bonuses.

 

[Euler09]

Lol thanks but no desire to be a Master of the Universe..

This mat be personal but when at the beach do you wear a speedo?

 

[speedo]

This mat be personal but when at the beach do you wear a speedo?

HaHa, back in my lifeguard days but the nick comes from an old doo wop song.

 

[spindr0]

However, what other ways do low volatility create problem for traders?

High correlation pairs trading is much harder to succeed with when volatility is low.

 

[speedo]

Speaking of low volatility, Elvis has left the building.

 

[volpri]

Low volatility can be traded profitably if one knows the patterns that low volatility creates and how to trade those patterns. Same thing with high volatility. A trader should have strategies to trade both.

 

[ToddGaack23]

Hi,

I just heard on the news that Wall Street banks are cutting bonuses for their traders due to low return as result of low volatility.

I understand low volatility creates less premium for option sellers and less room for directional traders.

However, what other ways do low volatility create problem for traders?

If you don't know the answer to this it's time to run far, FAR FAR AWAY

Love,
Todd