Trading News

Liquidity provision strategies are critical for the smooth operation of financial markets. They involve various techniques and approaches to facilitate trading, reduce transaction costs, and improve market stability.   Key Takeaways – Liquidity Provision Strategies Market making HFT Arbitrage Algorithmic trading (various strategies) Dark pools Liquidity mining Central bank liquidity provisioning   Market Making Market […]

Bayesian optimization is a probabilistic model-based approach for optimizing objective functions that are expensive to evaluate. This technique is handy in trading strategies where backtesting and parameter tuning can be computationally intensive. This strategy is useful for more technically-oriented traders of all stripes – from scalpers and day traders through longer-term position traders.   Key […]

Dual Momentum Trading is a trading strategy developed by Gary Antonacci that combines two types of momentum: relative momentum and absolute momentum This strategy tries to capture the benefits of both types of momentum to improve returns and reduce risk.   Key Takeaways – Dual Momentum Trading Dual Momentum Trading combines relative strength momentum and […]

Enhanced indexing is a strategy that looks to outperform a traditional index by making minor adjustments to its composition while maintaining a similar risk profile.  It combines passive and active management techniques to achieve better returns without significantly deviating from the original index’s structure.   Key Takeaways – Enhanced Indexing Strategic Adjustments Enhanced indexing involves […]

Alternative beta strategies – also known as “smart beta” or “factor investing” – is an approach to portfolio management that tries to capture market inefficiencies and enhance returns beyond traditional market-capitalization-weighted indices (i.e., indexing to the S&P 500 and the like). These strategies leverage various factors or styles to build portfolios that are systematically different […]

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 […]

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 […]

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 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 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 […]