The future , will belong not only to the educated man, but to the man who is educated to use his leisure wisely - C.K.Brightbill

Via Waters: “Dharamshi predicts that the availability of low-touch trading will cause volumes to double over the next couple of years. The firm already has 150 foreign institutional clients in London and Hong Kong and Dharamshi says the availability of DMA will lure a new crowd of statistical-arbitrage hedge funds and program traders to India. Motilal Oswal already has interest from potential new clients in the US and Singapore, he says.

Better than a thousand hollow words is one word that brings peace. Better than a thousand hollow verses is one verse that brings peace. It is better to conquer yourself than to win a thousand battles. Then the victory is yours. - Buddha

Holding an option entails some risk, and the value of that option depends on the ‘market price’ of that risk – the covariance of the risk with an appropriate discount factor. Nonetheless we would like not to go back to ‘absolute’ methods that try to price all assets. We can still form an approximate hedge based on a portfolio of basis assets ‘closest to’ the focus payoff. Then the uncertainty about the option value is reduced only to figuring out the price of the residual.

“Implied volatility is the the wrong number to put in the wrong formula to get the right price of the plain vanilla option”