Stock Trading News

How to Measure Risk in Financial Markets (VaR, Standard Deviation, and More)

Measuring risk is a critical aspect of finance as it helps traders/investors, financial institutions, and companies make informed decisions about their trades, investments, and their overall financing activities. The importance of measuring risk in finance can be summarized as follows: Risk and return are intertwined: By and large, every investment involves a trade-off between risk […]

19+ Reasons Why Short Selling Is Important in Financial Markets

Many market participants have negative opinions of short selling, but it’s essential to healthy, functioning financial markets. In this article, we explain the various benefits of short selling.   Key Takeaways – Reasons Why Short Selling Is Important in Financial Markets We cover the following: Hedging and Risk Mitigation Market Makers Need to Short to […]

Hedge Funds Don’t Beat the Market – Is This a Bad Thing?

A common criticism of hedge funds is that they don’t beat the market (commonly taken as the S&P 500, which is the world’s most tracked equity benchmark). Some even use this as a way to question why hedge funds exist in the first place. Namely, if something doesn’t add value, then shouldn’t natural forces do […]

GO Markets Adds Over a Thousand New Stock CFDs

GO Markets has bolstered its investment offering with more stock CFDs, presenting short-term trading opportunities on big names in the US and beyond. Key Takeaways 1000+ new share CFDs are available at GO Markets, including Spotify, Workday, and DoorDash. Stock CFDs can be traded on the broker’s MetaTrader 5 (MT5) platform with a $200 minimum […]

Sector Beta Arbitrage

Sector beta arbitrage is a trading strategy that tries to exploit mispricings between different stocks or sectors in the stock market based on their risk levels. This strategy leverages the concept of “beta,” which measures the sensitivity of a sector or stock’s returns relative to the overall market. Sometimes the strategy means, more generally, the […]

Interactive Brokers Adds Cboe Europe Derivatives (CEDX)

European stock options, European index futures and European index options are now available at Interactive Brokers through Cboe Europe Derivatives (CEDX). Key Takeaways Clients of IBKR can trade more than 300 stock options on prominent European companies spanning 14 countries and indices. Futures and options for single and trans-European indices are available on key benchmarks, […]

Post-Earnings Announcement Drift (PEAD) Trading Strategy

Post-Earnings Announcement Drift (PEAD) is a well-documented market anomaly where stock prices continue to drift in the direction of an earnings surprise for some time following the announcement. This provides traders with an opportunity to exploit the delayed response of the market to new earnings information. Like all strategies, it isn’t foolproof, and is just […]

To Hedge or Not to Hedge?

While equities and practically all financial assets were battered between February 19 and March 23, 2020, those who were long volatility, and put options in particular, either hedged well against losses or even made money. Those with convex exposure to downside protection reaped remarkable returns in some cases. This ignited debate over the use of […]

Asia Pacific Opportunities: BlackBull Introduces HK50 & CHINAA50

BlackBull Markets has bolstered its suite of 20+ indices with the Hang Seng Index (HK50) and China A50 Index (CHINAA50), providing opportunities to capitalize on an increasingly economically dominant region. Key Takeaways The HK50 and CHINAA50 are available on the MetaTrader 4 and MetaTrader 5 platforms. Floating spreads are charged on both indices with minimum volumes […]

ii’s New Managed ISA: Your Money Works, You Don’t Have To

interactive investor has introduced a brand-new Managed ISA. You’ll be matched to one of 10 portfolios depending on your goals and risk tolerance. Investment values can fluctuate. You may lose the money you invest. Tax treatment varies depending on your circumstances. Consult HMRC or a tax professional for guidance. Key Takeaways Two trading styles and […]

Older Posts