Trading News

Information geometry applies the concepts and methods of differential geometry to problems in probability theory and statistics, which are important in finance. It explores the geometric structure of statistical models and studies how these structures influence inference and decision-making processes. The key concept in information geometry is the notion of a statistical manifold, which is […]

XTB Investment Plans streamline passive investing by replacing the often complex and manual ETF portfolio management process with a simple method for selecting, investing, and overseeing ETF portfolios. Key Takeaways XTB’s Investment Plans automate the savings process for retirement, home buying, or future planning. Select preferred ETFs, assign percentages for each investment, and manage your […]

OANDA Labs Trader provides funded accounts to skilled traders who can earn a 75% share in profits. Key Takeaways There are 5 routes to funding, known as Challenges, with each consisting of 2 Phases. You need to hit a profit target of 10% in Phase 1 and 5% in Phase 2, amongst other objectives. You […]

Currency risk premium refers to the additional return a trader or investor demands for holding a currency that may depreciate against their home currency. This concept is important in international finance and investing. The risk premium is influenced by various factors:   Key Takeaways – Currency Risk Premia Currency risk premia reflect the potential return […]

Affine Term Structure Models (ATSMs) are a class of models used in finance to describe the evolution of interest rates or the term structure of interest rates. These models are characterized by the fact that the yield of a bond at any given time can be expressed as an affine (i.e., linear) function of factors […]

Fast Fourier Transform (FFT) pricing is a computational technique in financial quantitative analysis. It’s used primarily for the pricing of options and other financial derivatives. FFT transforms complex pricing models into a more manageable form to perform efficient calculations and analysis.   Key Takeaways – Fast Fourier Transform Pricing Computation Efficiency Fast Fourier Transform (FFT) […]

Rough volatility models emerged from empirical observations that the volatility of financial markets does not behave smoothly. Instead, it displays “roughness,” and needed better quantitative models to represent it accurately.   Key Takeaways – Rough Volatility & Bergomi Model Non-Smooth Volatility – Rough volatility models, including the Bergomi model, capture the observed rough, non-smooth nature […]

There are many games that share similarities to trading. In fact, some of them you can also make money from. Here we’ll take a look at the games most similar to trading.   Key Takeaways – Games Most Similar to Trading We look at the games most similar to trading. These game concepts, when applied […]

Hidden Markov Models (HMMs) are statistical models that represent systems with hidden states. These models are useful in fields like speech recognition, bioinformatics, and financial analysis. They capture the idea that the observed outputs of a system are the result of states that are not directly visible or “hidden.”   Key Takeaways – Hidden Markov […]

Hidden variables in finance refer to elements that aren’t directly observable or quantifiable but significantly influence financial markets and investment outcomes. These variables often exist beneath the surface of standard financial analyses, impacting asset performance, market movements, and risk assessments.   Key Takeaways – Hidden Variables in Finance Hidden variables in finance, like central bank […]