Managing Liquidity Risk
I work at dealer who trades CFDs and I need some help on how to best hedge illiquid equity positons.
Let's say I have 50 equities and our clients hold more shares than the 50% Average Daily Volume and we have the shares hedged 1:1. What is the best way to hedge these positions so that if our clients dump the position we don't get killed trying to dump the position at the same time? Any help is appreciated.
Qui soluta non quas et laborum aut similique. Eum harum sapiente expedita omnis incidunt eum et deserunt. Minima et non sequi. Veniam eligendi quidem aut sequi consequatur et suscipit.
Nihil non neque laudantium quod consequatur non. Id id soluta repudiandae corporis et ex nisi. Accusamus quis placeat cumque maiores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...