Investments and hedging. V. Kapitonenko
Forex scalping strategies are a popular choice among most beginners , as they can help you make huge profits.
At the same time, professional investors prefer to earn a little, but stably and with minimal risk.
Therefore, most large investment companies use hedging , 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 were once called “Hedge Funds”; this happened precisely because of the strategy they used.
The book "Investments and Hedging" by Veleriy Kapitonenko explains how to successfully apply this risk reduction method in stock trading.
Chapter summary:
Mathematical foundations of financial analysis – interest rates and discounts, compound interest with capitalization. Formulas and mathematical calculations applied in practice.
Typical applications – how loan calculations are performed, investment evaluation methods, choosing the most profitable investment options.
The mathematical foundations of finalization – what are the risks involved in investing, and the main methods for calculating and mitigating 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. Options hedging basics.
Interest rate risk hedging – using bonds as the primary instrument. Concepts such as duration and immunization, forward rates.
This book is intended for university students studying stock trading and investments. It will also be of interest to those who prefer long-term stock market investments with minimal risk.
The textbook is quite informative and can really help you learn how to create the right investment portfolios .
