Currency Market Risk Management 6

In ecology, there is the concept of biodiversity. The colder, higher latitudes of our planet contain relatively few species, but those species occur in great quantities. The ecosystems near the frozen arctic region contain vast tracts of boreal pine forests populated with a similarly limited set of fauna. In the temperate latitudes, we encounter more species (diversity) and more dependencies among the species (complexity). The tropical latitudes are home to an incredibly diverse set of species, each occupying specific ecological niches, in systems vastly more complex and interrelated than in the higher latitudes.

Market systems show a similar progression in product diversity and complexity as we move from boreal ...

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