Risk Management in Trading

Full Name
Risk Management in Trading: Techniques to Drive Profitability of Hedge Funds and Trading Desks

Risk Management in Trading is a comprehensive handbook for understanding how to minimize risk and maximize profits. This accessible resource offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions. It includes an introduction to hedge fund and proprietary trading desks and offers an in-depth exploration of the topic of risk avoidance and acceptance. This book explores the finer points of financial risk management and shows how to decipher the jargon of professional risk-managers

Some key topics include:

  • Techniques to improve trading strategies like backtesting and portfolio diversification
  • Controls around trading like daily mark to market, rogue trading analytics, and post-trade forensics
  • The benefits and pitfalls of setting position limits using value at risk and expected shortfall measures
  • How to transfer risk with hedging
  • Managing the non-linear risks of option trading
  • Limiting counterparty credit risk and calculating credit value adjustments (CVA)