Kendara
Member
Cash: $ 3.50
Posts: 14
Joined: 14 Nov 2009
Location: Tokyo |
back-book trade |
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I'm wondering what a "back-book trade" means.
It appears in the following sentence.
With CNY vols at lows, and given the uncertainty over the growth/inflation
dynamic in China, we see limited downside for vols at this level and
recommend buying a 1Y ATMF straddle at 3.90% as a back-book trade in
case things don't go as planned in China and vols pick up.
Does anyone have any idea?
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