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Derivatives




Forward Bleed


A bleed that measures the effect of time on an option contract (or an options portfolio) as it becomes closer to its expiration date. More specifically, a forward bleed captures the effect of increasing volatility over an option or a set of options. In this sense, it is similar to the concept of time decay. Initially, a rise in volatility can increase delta, though a further rise could work reversely.

The opposite of forward bleed is backward bleed.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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