This chapter explains the new perspective of the book with regard to the current developments in the trading venues. Trading has become a key instrument of risk management. Increased trading facilities provide opportunities to make profits at volatile markets. Variance of price quotation is not per se risky, but misestimation of prices is risky. Static diversification is replaced by dynamic revision. Order book management plays a key role.

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Preface: Beyond Markowitz: Trading Turns Volatilities into Profits

  • Otto Loistl,
  • Georg Behm,
  • Sascha Bakry

摘要

This chapter explains the new perspective of the book with regard to the current developments in the trading venues. Trading has become a key instrument of risk management. Increased trading facilities provide opportunities to make profits at volatile markets. Variance of price quotation is not per se risky, but misestimation of prices is risky. Static diversification is replaced by dynamic revision. Order book management plays a key role.