Investments and hedging. V. Kapitonenko
Among most beginners, forex scalping strategies ; they allow you to make huge profits.
At the same time, professional investors prefer to earn a little, but stably and with the least risk.
hedging in their work , which allows them to reduce the risk of losses due to unfavorable changes in the exchange rate to a minimum.
It is not for nothing that these companies at one time received the name “Hedge Funds”; this happened precisely because of the strategy they used.
The book “Investments and Hedging” written by Velery Kapitonenko talks about how to successfully apply this method of reducing risks in stock trading.
Summary of chapters:
Mathematical foundations of financial analysis - credit interest and discounts, compound interest with capitalization. Formulas and mathematical calculations used in practice.
Typical applications - how loan calculations are made, investment evaluation methods, selection of the most profitable investment options.
The mathematical foundations of finalization - what risks exist when investing, the main methods for calculating and reducing them.
Formation of a securities portfolio - optimal balance of risks and profitability, portfolios of only two types of securities, creation of a market portfolio.
Defensive portfolios and option hedging - negative correlation and its use in hedging. Basics of hedging with options.
Interest rate risk hedging – using bonds as the main instrument. Such concepts as duration and immunization, forward rates.
The book is intended for university students studying stock trading and investment. It will also be of interest to those who prefer long-term investments in the stock market with minimal risk.
The textbook is quite informative, it can really help you learn how to create the right investment portfolios .