Harel Jacobson
Sep 30, 2022

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Market-makers are bounded by risk limits and unable to warehouse the entire risk buy-side clients trade with them, so vol managers use that to act and a "opportunistic" market-maker and trade what they think is a dislocation in vol. Also, in most cases you will see dealers coming with mid-market "axes" (interest) to vol managers to transfer some risk

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Harel Jacobson
Harel Jacobson

Written by Harel Jacobson

Global Volatility Trading. Python addict. Bloomberg Junkie. Amateur Boxer and boxing coach (RSB cert.)!No investment advice!

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