TradingVolatility_eBook_InteractivePDF_090117

IF A MARKET USUALLY
MOVES ABOUT 1% IN A DAY
AND IT SUDDENLY JUMPS 5%,
THE VOLATILITY HAS GONE UP.
When a market is bucking like a roller coaster, it’s good to
remember that roller coasters don’t have steering wheels. You
don’t get to control where they’re going.
They do, however, have strong safety harnesses so that no
matter how scary the ride might feel, you’re actually protected
from danger the whole time. You don’t have to worry about
whether you’ll survive a roller-coaster ride.
As long as you’re “at least this tall,” your risk is nothing worse
than an adrenaline rush (and maybe a touch of nausea from
the funnel cakes you ate).
That safety harness makes a roller-coaster ride exciting without
being excessively dangerous. It limits your risk. Guaranteed
limited risk trading products can do the same thing when you’re
trading volatile markets.
VOLATILITY LIMITED RISK DIVERSIFICATION UP AND DOWN
Trading on Nadex involves financial risk and
may not be appropriate for all investors. 5 / 41