Traders Pay Steeper Price to Hedge Risk From Stocks to Gold

BloombergSunday, October 5, 2025 at 2:00:00 PM
Traders Pay Steeper Price to Hedge Risk From Stocks to Gold
Traders are facing increased costs to hedge against risks in various assets, including stocks and gold, as the risk premium for options rises. This trend is concerning because it indicates that while implied volatility on major indexes has remained stable or even decreased, the underlying uncertainty in the market is prompting traders to pay more for protection. This could signal potential instability ahead, affecting investor confidence and market dynamics.
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