Independent. Objective. Reliable.
Systematic risk is a term used to describe the probability of a broad-based market meltdown occurring. Although comprehensive market crashes are rare, traders and investors remain vigilant in limiting exposure to such events. This goal can be accomplished in a variety of ways, with the execution of futures and options hedging strategies being near the… Read more.
For active traders and investors, systematic risk is a market driver that should never be ignored. It can come on as a surprise and wreak havoc on even the most well-diversified portfolios. Let’s take a look at how astute market participants address and hedge against this type of risk.
This post originally appeared in FutureSource’s Fast Break Newsletter on March 10, 2010, where Craig Turner is a regular contributor on various futures trading topics. Systematic risk is always a threat to even a well-diversified portfolio. When it comes to trading, we are always aware of systematic risk, and look for ways to hedge it… Read more.