Stock Trading News

Dividend futures are financial derivatives that allow traders to speculate on or hedge against future dividend payments of a specific stock or index. These instruments have gained popularity as a way to speculate on future dividend stream trajectories without the need to own the underlying securities.   Key Takeaways – Dividend Futures Pure dividend exposure […]

The elasticity of demand refers to the degree of responsiveness of the demand for a product or service to changes in its price. A good is considered to be elastic if an increase in its price results in a significant decrease in the quantity demanded, and vice versa. It is also referred to as “price […]

LiteFinance has bolstered its selection of equities, providing exposure to fresh stocks listed on the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotations (NASDAQ). Key Takeaways 32 new stocks are available on the LiteFinance platform, including American Airlines, Salesforce, Dell, and Goldman Sachs. The minimum trade size is 1 […]

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 […]

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 […]

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 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 […]

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) 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 […]

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 […]