Edge - what is it?

[tar]

...

 

[theroguetrader]

Edge

EVERYONE wants " The Edge " - and EVERYONE is looking for it.... !!

If you can hit into a price - " just before it leaves " - you are immediately sitting in a trade that is BREAK EVEN ... !!


You are essentially risking " NOTHING TO MAKE SOMETHING " .... !! THE EDGE......!!



If you spread bet - you are immediately DOWN by the spread - " NO EDGE "..... !!

 

[tar]

what about writing ( selling ) Indices options , doesnt this give an edge if u have deep pockets and u go with the general trend , u will gain the premium in the long run , am i right ?

 

[Claudia123]

what about writing ( selling ) Indices options , doesnt this give an edge if u have deep pockets and u go with the general trend , u will gain the premium in the long run , am i right ?

Options are very complex and best left to those that know and understand them. A deep pocket is needed for sure. Be very careful.

 

[case777]

I come from a gambling background so edge to me has always meant positive mathematical expectancy, expressed as a number.

The system, or rules, intution, skill or talent is what gives you the edge, but is not the edge itself.

 

[Joey25]

what about writing ( selling ) Indices options , doesnt this give an edge if u have deep pockets and u go with the general trend , u will gain the premium in the long run , am i right ?

In that example you need to be honest about what you're bringing to the table:

(a) an ability to spot the general direction of the market

(b) an ability to spot when implied volatility is too high

or perhaps a bit of both.