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The stock market is getting more turbulent. Here are 4 ways that's reshaped how investors behave.


Published on 2025-03-09 07:01:04 - Insider
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  • The stock market's increased volatility has investors rethinking how they make bets and protect their money.

The article from Business Insider discusses how increased market volatility, particularly in 2025, has led to significant changes in trading and hedging strategies among investors. According to insights from the CME Group, there has been a notable shift towards more sophisticated hedging techniques due to the unpredictable nature of the stock market. This includes a rise in the use of options for hedging, with investors increasingly turning to strategies like protective puts and covered calls to manage risk. The article highlights that the VIX, often referred to as the market's "fear gauge," has been at elevated levels, prompting traders to adapt by employing more dynamic and flexible trading approaches. Additionally, there's an increased focus on understanding and utilizing volatility products, as well as a trend towards using algorithmic trading to quickly adjust positions in response to market movements. The piece also notes that while these strategies can mitigate risk, they also introduce new complexities and costs, requiring traders to be more vigilant and informed than ever.

Read the Full Insider Article at:
[ https://www.businessinsider.com/stock-market-trading-hedging-strategy-changes-increased-volatility-cme-group-2025-3 ]