Trading News
FX Hedging – How It WorksIn international investment, currency risk is a significant concern, which leads to the concept of FX hedging. When investors from one country, such as Japan, buy foreign bonds, they must exchange their domestic currency (JPY) for another (such as USD or EUR). This exposes them to foreign exchange (FX) risk, which many prefer to avoid. […]
Quantum Algorithms in Financial Optimization ProblemsQuantum algorithms promise to deliver faster and more accurate solutions to financial optimization problems. We look at quantum algorithms and their application in various financial optimization problems and their edge over classical algorithms. Key Takeaways – Quantum Algorithms in Financial Optimization Problems Quantum algorithms leverage quantum superposition and interference to provide faster and more […]
Quantum Game Theory & Applications to FinanceQuantum Game Theory is an extension of classical game theory, which incorporates the principles of quantum mechanics. Classical game theory has been a cornerstone in economic and social sciences. The quantum version of game theory offers a different perspective, especially when it comes to understanding complex financial systems. Key Takeaways – Quantum Game Theory […]
XTB Introduces Fractional Shares With Zero Commissionshas launched fractional shares on its xStation platform. Providing flexibility, accessibility and diversification, traders can buy small portions of stocks from the US and Europe. Key Takeaways Traders can invest in major companies like Tesla, Apple and Netflix for a fraction of their full share price. Investors can buy fractional shares in any stock, ETF […]
Market Microstructure and Algorithmic TradingMarket microstructure refers to the study of how trading mechanisms, rules, and protocols, as well as the actions of market participants, influence the formation of asset prices, trading volume, and trading behavior. Algorithmic trading involves using computer algorithms to automatically make trading decisions, submit orders, and manage those orders after submission. Understanding the various intricacies, […]
Saudi Sports Teams – What’s the Economic Case?The economic case for Saudi Arabia’s investment in sports teams and stars can be analyzed from various angles. Saudi Arabia’s investment in sports teams has drawn widespread skepticism because sports teams usually aren’t the most profitable investments – even among famous teams in countries with a long history and media coverage of the sport. However, […]
What to Know Before Trading or Investing in Foreign BondsForeign bonds are instruments that are much more complex to trade or invest in than domestic bonds. There’s a lot to them that doesn’t meet the eye at first. For example, when amateur traders and investors decide to buy a foreign bond, what’s going to be the one thing they hyper-focus on? The nominal yield. […]
7+ Companies With a Dual Share ClassSeveral companies have dual or multiple share classes. Here are some notable examples: GOOG vs. GOOGL Alphabet Inc. (formerly Google Inc.) has two publicly traded share classes. GOOG represents Class C shares (no voting rights), while GOOGL represents Class A shares (one vote per share). BRK.A vs. BRK.B Berkshire Hathaway Inc. has two share classes. […]
Do Hedge Funds & Private Equity Create Economic Value?Hedge funds and private equity firms have considerable influence on the dynamics of capital allocation. The question of whether they create economic value is a topic of debate among industry experts and the broader public. Here we look at the hedge fund and private equity industry and its role in creating economic value. Key […]
11+ Little-Known Strategies Hedge Funds Use to Juice ReturnsIn hedge funds, various lesser-known strategies are employed to amplify returns and mitigate risks. We look through them below. Key Takeaways – Little-Known Strategies Hedge Funds Use to Juice Returns Some examples of little-known strategies hedge funds use to juice their returns: Offshore Fund Structure Transfer Pricing Debt Financing Reinsurance Business Variable Annuities Risk […]
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