Trading News

Stochastic Dominance is a concept used in decision theory and economics to compare and rank different probability distributions based on their expected utilities. It provides a method for deciding whether one trade or investment is preferable to another (under uncertainty) without making specific assumptions about an investor’s/trader’s utility function.   Key Takeaways – Stochastic Dominance […]

Jensen’s Alpha is a performance metric used in finance to determine the excess return of an investment portfolio over the expected return predicted by the Capital Asset Pricing Model (CAPM). Developed by Michael Jensen in the 1960s, this metric is a popular tool for evaluating the skill of portfolio managers.   Calculation & Formula of […]

The Simple Dietz Method and the Modified Dietz Method are both performance measurement techniques used to calculate the rate of return on an investment portfolio. These methods are particularly useful for calculating returns over short time periods and are widely used due to their simplicity and effectiveness. Key Takeaways – Simple Dietz Method vs. Modified […]

Maximum Downside Exposure (MDE) is a risk metric used in finance to measure the most significant loss that an investment or a portfolio could have experienced over a specified period. This measure is useful for understanding the worst-case scenario risk. So, it gives an idea of the potential losses a trade or investor might face […]

The Modigliani Risk-Adjusted Performance (M2, RAP) is a performance measure for an investment or trading portfolio. It extends the concept of the Sharpe Ratio by adjusting a portfolio’s returns for risk. But it presents the results in a more intuitive, percentage-rate-of-return format.   Calculation and Components Formula M2 is calculated by first determining the Sharpe […]

BlackBull has integrated the cTrader platform, a comprehensive solution set to enhance the user experience for forex and CFD traders. Key Takeaways cTrader is packed with features, including sophisticated charts, algo trading and copy trading. It delivers a user-friendly environment with an intuitive design and straightforward navigation. cTrader is available on desktop, web and mobile. […]

Multi-regulated FP Markets has responded to client requests by widening its choice of commodity CFDs. Key Takeaways Users can now trade spot gold and silver against several traditional currencies including SGD. Hard commodities like lead, zinc, nickel and copper can also be traded against USD. The metal CFDs are available on the broker’s MT4, MT5 and cTrader platforms. […]

As the growing impact of climate change is felt in daily life, eToro’s XtremeWeather portfolio offers exposure to companies resilient to severe weather events. Key Takeaways The XtremeWeather portfolio is formed of 30 stocks from various industries, including renewable electricity, industrial machinery and gas. Thousands of stocks were analyzed and rated according to various criteria, […]

Conic solvers are used in financial optimization, where accuracy and computational efficiency are most important. Financial optimization involves the use of mathematical models to make optimal decisions regarding trading and investment decisions and risk management. This field often requires dealing with complex constraints and objectives. This is where conic solvers come into play.   Key […]

Downside Beta and Upside Beta, collectively referred to as Dual-Beta, are concepts in finance used to measure the volatility of an asset in relation to a benchmark but in two different scenarios: negative (downside) and positive (upside) market movements This bifurcation allows traders/investors to understand how an asset behaves under varying market conditions. This provides […]