Trading News

All asset classes will experience 50-80 percent (or larger) drawdowns over the course of one’s lifetime. This illustrates the importance of having a balanced portfolio, or one that avoids systematic biases where a portfolio will naturally do well in a particular environment and poorly in others. In this article, we’ll cover how to build a balanced […]

Published on: Apr 11, 2023  Robinhood has reached a settlement after an investigation found “operational and technical failures” hurt retail investors. Robinhood came under the spotlight after platform outages in March 2020 left hundreds of thousands of investors unable to make trades. The brokerage will pay $10.2 million in penalties. State securities regulators from Alabama, California, […]

In equity markets, there are two common methods companies use to return capital to shareholders: dividends and share buybacks. Both approaches have their own unique set of advantages and disadvantages, and the choice between the two can be a critical decision for corporations and investors alike. This article will explore the benefits and drawbacks of […]

What Is Repo Funding? Repo funding, or repurchase agreement funding, is a financial instrument used by banks, financial institutions, and investors to access short-term liquidity. It involves the temporary exchange of securities (usually government bonds) for cash, with a commitment to repurchase the securities at a later date. The process is similar to a collateralized […]

CMC Markets is going live with its soft launch of CMC Invest in Singapore. The firm has been eyeing expansion in Asia after recently obtaining a license from the Monetary Authority of Singapore (MAS). The new platform is already available in the UK and Australia. Cost-Effective Investing CMC Invest will provide a suite of products […]

Mean reversion strategies are based on the principle that prices of financial assets will eventually move back toward their long-term average or mean. Here are a few examples of mean reversion strategies for trading financial markets: Mean Reversion Strategies Relative Value Trading Relative value involves comparing the price of an asset to another related asset […]

Rubber Band Trading is a popular mean reversion trading strategy that relies on the use of Bollinger Bands and other mean reversion indicators. This approach is based on the idea that financial markets are inherently cyclical, and that asset prices tend to revert to their mean values over time. By identifying periods when prices have […]

Selling options before expiration can be advantageous in certain circumstances. Traders may choose to sell an option early if they have achieved their profit target or if the market conditions have changed unfavorably. Additionally, selling an option before its expiration date may help reduce the risk of being assigned on short positions or positions that […]

The “buy the dips, sell the rips” strategy is largely based on the belief that short-term price fluctuations are often driven by market sentiment (“noise”) rather than fundamental changes in the value of the asset. The fundamental value of a stock (or piece of equity in a business, more generally) is the amount of cash […]

In markets, certain events can have a significant impact on trading volumes and market volatility. One such event is known as quadruple witching or, more accurately in today’s context, triple witching. This phenomenon, which occurs four times a year, refers to the simultaneous expiration of three major types of derivatives contracts: stock options index futures, […]