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Does this have anything to do with volatility drag in trading? https://en.wikipedia.org/wiki/Volatility_tax https://en.wikipedia.org/wiki/Volatility_tax
by EGreg 3y ago
Does this have anything to do with volatility drag in trading?
https://en.wikipedia.org/wiki/Volatility_tax https://en.wikipedia.org/wiki/Volatility_tax
- rpmisms 3y agoConsidering that Brownian motion applies (chaotic movement, generally in liquids, caused by heat), yes, the market mirrors the laws of physics here.
- cmrx64 3y agoThe theorems of thermal kinematics derived apply to limited models with a quadratic energy potential, localized on a spatial manifold. is there any reason to believe the market is described by this sort of model?
- rpmisms 3y agoMirrors != described by. Plenty of non-physical phenomena mirror physical occurrences, and this is one of them.