Asset Important Facts
Rising FX volatility resulted in high losses, which proved extremely difficult for funds to decide like the liquidity of the primary capital resource in some portfolios almost disappeared. The equal happened indeed with redemption funding requirements but, in the case of Forex market, directors did not have the choice to gate or delay the fund.
Volatility swaps allow investors to trade the volatility of an asset directly, much as they would trade a cost index. The base is generally a outlandish commute (FX) rate (hugely liquid sell) but could be as well a single name equity or indication.