In January 2016, the Basel Committee on Banking Supervision published the standard Minimum capital requirements for market risk (access the BIS full text here). With the goal of promoting a consistent global implementation of this standard, which is to become the basis for Pillar 1 capital requirements in 2019, the Basel Committee periodically reviews frequently […]
Market Risk
5 Essential Rules for Trading with Futures
A “Futures contract” is a legal agreement between two parties that agree the delivery, from one party to the other, of a specified quantity, of a specified asset, on a specified future date, at a price agreed on the moment of the trade execution. Futures contracts are exclusively exchange-traded (the equivalent OTC instrument is called a […]
Global Risks Report 2017
The Global Risks Report 2017, from the World Economic Forum (WEF), features perspectives from nearly 750 experts on the perceived impact and likelihood of 30 prevalent global risks as well as 13 underlying trends that could amplify them or alter the interconnections between them over a 10-year timeframe. The WEF summarises that: 2016 saw a crystallization […]
FREE COURSE: Financial Markets
This is a great opportunity for anyone who wants to improve their knowledge in Financial Markets. It’s a FREE course created by Yale University and starts on Jan 23. A summary of the course content and syllabus is explained below. Course Syllabus Week 1: Basic Principles of Finance and Risk Management (5 videos, 1 reading) Reading: Optional […]
Six Potential Risks for Investors in 2017
Investment Banks analysts anticipate that financial markets will be affected in 2017 by three main events: Donald Trump’s performance as US President, which for most, is a big uncertainty; the first round of the 2017 French presidential election, held on 23 April 2017; and the next German federal elections, which will elect the members of the Bundestag, […]
EBOOK: Reminiscences of a Stock Operator
Taking a chance in financial markets implies potential big risks and this is not for everyone. The risk/reward might be high and even if you have every possible rational for a trade well thought, discussed, supported with solid fundamentals and technical analysis, even so, things might go wrong and you might suffer big losses. This bitter reality is many […]
10 Top Risks for 2017
The following report from Protiviti, an international Risk & Business Consulting and Internal Audit company, and North Carolina State University’s ERM Initiative, contains results from the fifth annual risk survey of directors and executives. This report includes their views and the likely collection of risks that will affect their organisations over 2017. Key findings The […]
Top 5 Risk Management Trading Rules
Portfolio managers (PM) and traders make investment decisions everyday which translate into risk positions in their books. These decisions are mostly supported by strong fundamental views and solid convictions, based on the PM’s or trader’s view on how the market will move and how will these moves affect their positions. There are several techniques that a PM or trader […]