Stock Trading News

Auto-callables are complex savings instruments that offer a bond-like fixed return, crafted by selling stock options.   Key Takeaways – Auto-Callables Auto-callables are savings instruments that offer fixed returns similar to bonds, created by selling stock options, primarily on broad stock market indices. They attract investors with their potential for higher yields and early redemption […]

has 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 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, […]

Market microstructure is a specialized area within finance that explains how assets are exchanged in markets. Market microstructure affects liquidity, transaction costs, and price discovery. It’s applicable to both real and financial assets, but the latter has seen more extensive research due to the readily available transaction data. The primary focus of market microstructure research […]

There are many options pricing models with complex mathematical foundations and variables that go into determining what an option is worth. But in terms of the big-picture intuitive understanding of an option’s value is, it really boils down to two main factors: the probability that an option will be in the money (ITM) by expiration […]

Several 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. […]

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 […]

Before trading foreign equities denominated in a different currency, it’s important to understand that it’s not just the returns, but returns + the currency movement. For example, if the USD has a higher nominal interest rate than the JPY, it will have implications for the forward curve of the USD/JPY currency pair. So if a […]

We trade because we expect that it’ll earn us money. Except when you have a poor day, week, or month in the markets it seems like the markets are maybe the easiest way to lose money. Losing money in the markets teaches us expensive lessons on how to improve by doing things differently. One of […]

Comparable company analysis – also called “trading comps” or “comps” in finance lingo – is another business valuation method to choose from among discounted cash flow and precedent transactions modeling. (A leveraged buyout is also technically a valuation method as well but is more specialized toward private equity firms rather than investment banking.) It is […]