BROWSE

Vanilla Strategy

What is 'Vanilla Strategy'

An approach to investing or to business decision-making that is basic and common. Some investors and businesses excel because they choose an ordinary, vanilla strategy, while others succeed through innovation. In derivatives trading, a vanilla strategy is the use of two different plain vanilla instruments, such as swaps, at the same time.

Explaining 'Vanilla Strategy'

For example, a vanilla strategy for retirement saving might include saving at least 10% of one's annual income, investing in diversified portfolio of stocks and bonds through tax-advantaged savings accounts like a 401(k) and Roth IRA, and buying a home with a plan to pay off the mortgage before reaching retirement. There is nothing interesting or unique about this strategy - it is "vanilla" because it is ordinary.


Further Reading


Hedging against a price drop using the inverse vertical ratio put spread strategy formed by barrier options
www.inzeko.ktu.lt [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …

Evolution, finance, and the population genetics of relative wealthEvolution, finance, and the population genetics of relative wealth
link.springer.com [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …

Industry herding and momentum strategiesIndustry herding and momentum strategies
www.sciencedirect.com [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …

A fetish and fiction of finance: Unraveling the subprime crisisA fetish and fiction of finance: Unraveling the subprime crisis
www.tandfonline.com [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …

Financial versus operative hedging of currency riskFinancial versus operative hedging of currency risk
www.sciencedirect.com [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …

Short combo strategy using barrier options and its application in hedgingShort combo strategy using barrier options and its application in hedging
www.sciencedirect.com [PDF]
Page 1. H St Vi Te Ne em Th Sp op ag pr un of op int he no So be app sec app us cu an mo in be sig fle thi Ke lib int vo an ris are nu co the ris eff av eff em ex Hed tra inc echn emc mai his p prea ption gain ovi nlike f fro ption …