Read more
"A comprehensive resource for understanding how to minimize risk and increase profits In this accessible resource, Wall Street trader and quantitative analyst Davis W. Edwards offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions. Risk Management in Trading includes an introduction to hedge fund and proprietary trading desks and offers an in-depth exploration on the topic of risk avoidance and acceptance. Throughout the book Edwards explores the finer points of financial risk management, shows how to decipher the jargon of professional risk-managers, and reveals how non-quantitative managers avoid risk management pitfalls.Avoiding risk is a strategic decision and the authorshows how to adopt a consistent framework for risk that compares one type of risk to another. Edwards also stresses the fact that any trading decision that isn't based on the goal of maximizing profits is a decision that should be strongly scrutinized. He also explains that being familiar with all the details of a transaction is vital for making the right investment decision. Offers a comprehensive resource for understanding financial risk management Includes an overview of the techniques and tools professionals use to control risk Shows how to transfer risk to maximize results Written by Davis W. Edwards, a senior manager in Deloitte's Energy Derivatives Pricing Center Risk Management in Trading gives investors a hands-on guide to the strategies and techniques professionals rely on to minimize risk and maximize profits"--
List of contents
Preface ix
CHAPTER 1 Trading and Hedge Funds 1
CHAPTER 2 Financial Markets 33
CHAPTER 3 Financial Mathematics 61
CHAPTER 4 Backtesting and Trade Forensics 95
CHAPTER 5 Mark to Market 121
CHAPTER 6 Value-at-Risk 141
CHAPTER 7 Hedging 177
CHAPTER 8 Options, Greeks, and Non-Linear Risks 199
CHAPTER 9 Credit Value Adjustments (CVA) 237
Afterword 267
Answer Key 269
About the Author 299
Index 301
About the author
Darryl Edwards is a Movement Coach, author of the best-selling book "Animal Moves" and a thought leader in the area of creativity and innovation in fitness and health. Darryl developed the Primal Play Method to inspire others to make physical activity fun while getting healthier in the process. He blogs at PrimalPlay.com
Summary
A comprehensive resource for understanding how to minimize risk and increase profits In this accessible resource, Wall Street trader and quantitative analyst Davis W. Edwards offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions.
