In working on a current trader interface – I am dealing with more derivs traders. Along with other things – we will be dealing in Variance Swaps. I have good product knowledge in some areas – and in some areas – I am still learning (finance is a big world). In any case – I am always trying to understand the “business incentive” for using a particular product. In trying to understand this for variance swaps – I found this article that gave me just the angle I was looking for: The Art of the Variance Swap. Here are  a few more refs; Volatility Swaps (technical), @ Wikipedia.

 -Chris

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