This will never happen. Those words were uttered to me years ago, when they came from a young and successful trader sitting across the table from myself and another colleague, who was a risk manager. The trader was managing a large portfolio of natural gas options, which was exposed to a devastating loss if natural gas prices dropped below $4.50 per million British thermal units.
Our intention was not to challenge the trader or to compel him to trim his positions – in fact, we respected him and
The week on Risk.net, July 14–20, 2017Receive this by email