by James Rickards
Volatility is waiting to explode due to unstable currency exchange rates, bank liquidity crises, geopolitical uncertainty, and a wild U.S. election cycle.
One or more of these potential sources of instability are ready to pop-up on the markets like a tightly jammed jack-in-the-box when someone unlocks the lid. The key to profits is to understand how to use volatility as a trading strategy. If you act now, you could reap huge rewards in a matter of weeks.
Most investors have some familiarity with trading specific instruments such as stocks, bonds, and gold. Investors also understand how options can be used to limit losses, and increase gains on trades involving those underlying instruments.
But, volatility is an unfamiliar trading strategy to many. How can you trade volatility? And, how is volatility poised to offer huge gains?