Written by John O’Donnell, Online Trading Academy
The Chart of the Week
Some trades have a large number of like-minded participants. These are called “crowded trades”. Obviously such “crowds” drive prices and rapid changes occur. Once the “crowd” starts to doubt the bets they have made there can be rapid movement in the opposite direction. This produces volatility. This week we discuss the trades that are currently most crowded.
Discussion of crowded trades continues after the Read more >> jump.
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