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Chris Donnan : Programming - Brooklyn Style

software, trading, family, fun

Variance Swaps

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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