Normality? Not yet

In economics there are different definitions of interest rate, which could create a bit of confusion, especially by their different usages. A rough definition of interest rate is the cost of borrowing money. In the Central Bank world, the interest rate is the one at which the Central Bank lends money to commercial banks, and […]

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What is the VIX Futures Term Structure telling us?

Volatility trading is becoming very popular in the Investment Banks and Hedge Funds’ trading rooms; therefore, I would like to make a brief summary of the tools more frequently used by traders. First, it is essential to point out the difference between historical volatility and implied volatility. On one hand, historical volatility is a backward […]

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