82 Frequently Asked Questions In Quantitative Finance
in the end, just a bit out in the timing. The loss could
have reversed, but if you have closed out your position
previously then tough. Having said that, human nature is
such that people tend to hold onto losing positions too
long on the assumption that they will recover, yet close
out winning positions too early. Marking to market will
therefore put some rationality back into your trading.
References and Further Reading
Wilmott, P 2006Paul Wilmott On Quantitative Finance, second
edition. John Wiley & Sons
