Trading News

Currency overlay is an investment strategy employed by institutional investors to protect their portfolios from currency fluctuations. The currency overlay manager first identifies the currency risk exposure of the portfolio, and then enters into currency hedging transactions to offset that risk. Currency overlay can be used to hedge both: currency risk arising from investments denominated […]

For traders, investors, and market participants, an understanding of various probabilistic, statistical, and analytical techniques is important for making good decisions when the future is unknown. Markets are heavily an applied probability exercise.  Each of these techniques and methods offers unique modeling capabilities and enables finance professionals to tackle specific and complex challenges – assessing […]

Forex broker, Skilling, has introduced around-the-clock trading on popular currency pairs, providing weekend trading opportunities. Key Takeaways 7 currency pairs can now be traded over the weekend: AUD/USD, EUR/USD, GBP/USD, NZD/USD, USD/CAD, USD/CHF, USD/JPY. Weekend forex trading is available on the Skilling Trader, MetaTrader 4 and cTrader platforms. Forex spreads are competitive, starting from 0.1 […]

Top-rated broker, Deriv, has elevated the mobile trading experience by providing access to MetaTrader 5 directly through browsers. Key Takeaways MT5 WebTrader offers the same functionality as the app, with no download required The web platform is compatible with all mobile browsers Existing traders do not need to create a new Deriv MT5 account You […]

Bayesian analysis in finance, trading, and investing is a framework that incorporates probabilistic modeling and decision-making under uncertainty. This approach is based on Bayesian inference, where prior beliefs are updated with new information to form posterior beliefs.   Key Takeaways – Bayesian Methods in Finance Bayesian methods in finance offer a probabilistic framework for incorporating […]

Agent-Based Modeling (ABM) is a very important aspect of financial market analysis and prediction, but is one of the least talked about. It operates under a different paradigm compared to traditional economic and financial models, which often rely on equilibrium theories (e.g., value investing, discounted cash flow) and aggregate market behaviors. In ABM, the market […]

When constructing a portfolio with nominal bonds and inflation-linked bonds, several considerations come into play, particularly concerning the different characteristics and environmental biases of these two types of bonds. We’ll cover these matters in this article.   Key Takeaways – Inflation-Linked Bonds vs. Nominal Bonds Risk and Inflation Protection: Inflation-linked bonds offer some protection against […]

Stochastic Optimal Control represents a mathematical framework used to determine optimal decision-making strategies in situations where outcomes are: partly random, and partly under the control of a decision-maker (e.g., trading, investing, financial decision-making) This concept is rooted in the theory of stochastic processes and optimal control theory. Stochastic Process A stochastic process is a mathematical […]

When comparing Python and C++ for financial algorithms, particularly in quantitative finance and economics, it’s important to consider several factors, including: performance ease of use library support, and the specific requirements of the task at hand We’ll go through each category by category.   Key Takeaways – Python vs. C++ for Financial Algorithms Performance: C++ […]

The financial markets and the economy are inextricably linked together. Understanding these cause-and-effect relationships and what market equilibriums are necessary to achieve is important to have a sense of where markets are likely to go. The financial system is what provides money and credit into the real economy. Money (what payments are settled with) and […]