Trading News

Exness Slashes Fees on Crude Oil and Bitcoin

Exness has reduced its spreads on Crude Oil (USOIL) and Bitcoin (BTCUSD) and updated its trading commissions for these symbols. Key Takeaways For USOIL, the average spread in the Zero account is 0 with a commission from $6.25 to $17.50 per lot/side, while the Raw account features a typical spread of 1.4 with a $3.5 […]

Crush Spread & How to Trade It

The crush spread is a trading strategy used in the commodities market – specifically within the agricultural sector. It involves the simultaneous purchase and sale of soybean futures and its derivative products, soybean meal and soybean oil, to exploit pricing inefficiencies and manage risk. This spread provides insights into the profitability of processing soybeans into […]

Synthetic Short Positions

A synthetic short position is a trading strategy used to replicate the financial outcomes of a traditional short sale without actually borrowing and selling the underlying asset. This strategy is typically created using options and futures contracts. Below is a detailed explanation of synthetic short positions, their components, and how they function.   Key Takeaways […]

Sentiment Arbitrage

Sentiment arbitrage is a trading strategy that exploits the difference in market sentiment between various groups of traders/investors, typically retail and professional traders. By analyzing and predicting the sentiment, traders can decisions to capitalize on any discrepancies in market perceptions. The wider the divergence, potentially the greater the opportunity.   Key Takeaways – Sentiment Arbitrage […]

NAV Discount Arbitrage Trading

NAV Discount Arbitrage Trading is a specialized strategy used by traders to exploit the price discrepancies between the Net Asset Value (NAV) of a fund and its market price. This strategy is commonly applied to closed-end funds (a type of mutual fund that doesn’t continually issue new shares), where the market price of the fund […]

Multi-Asset Spread Trading

Multi-asset spread trading is a trading strategy involving the simultaneous buying and selling of different assets to capitalize on the price differences between them. This technique tries to exploit relative price movements rather than outright price direction. This makes it a popular approach among professional traders and hedge funds looking for non-correlation to traditional asset […]

Geopolitical Risk Hedging Strategies

Geopolitical events can create significant volatility in financial markets, which can impact asset prices, currency values, and overall trading returns.  To protect against these risks, traders use various hedging strategies.  This article takes a look at how these hedging strategies can reduce geopolitical risks.   Key Takeaways – Geopolitical Risk Hedging Strategies Diversify Portfolios Spread […]

Credit Spread Arbitrage

Credit spread arbitrage is a trading strategy used in the fixed-income and derivatives markets, where a trader look to profit from the difference (spread) between two credit instruments. The strategy involves simultaneously buying and selling related securities to exploit price inefficiencies and differences in credit spreads. True credit spread arbitrage is trading price discrepancies between […]

Volatility Arbitrage

Volatility arbitrage is a trading strategy that tries to profit from the difference between the forecasted or implied volatility of an asset and its actual future volatility.    Key Takeaways – Volatility Arbitrage Market Neutral Strategy Volatility arbitrage tries to profit from the difference between expected and actual volatility. Options are typically used to create […]

Types of Traders

Traders can be categorized in various ways, primarily by their trading strategies and their level of professionalism.  Here’s a breakdown: By Strategy Day Traders Definition – Traders who buy and sell financial instruments within the same trading day. They try to capitalize on short-term market movements. They rarely hold overnight. Characteristics – High-frequency trading, use of technical […]

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