In the trading of futures, “rollover” refers to the process of closing out open positions in soon-to- expire contracts in favour of contracts with later expiration dates. Rollover is [...]
High-frequency trading (HFT) aims to profit from the pricing volatility facing a specific financial instrument by employing aggressive short-term trading strategies. Through this pursuit, HFT has [...]
What is Arbitrage? Arbitrage trading is an opportunity in financial markets when similar assets can be purchased and sold simultaneously at different prices for profit. Simply put, an arbitrageur [...]
When trading in forex (as with trading in any asset), traders will want to follow the age-old recommendation to “buy low and sell high.” To do this, they will clearly need to develop [...]
The Efficient Market Hypothesis (or EMH, as it’s known) suggests that investors cannot make returns above the average of the market on a consistent basis. This is because under normal [...]
Random walk theory is the belief that a security's current market price is the product of chance rather than the sum of past events or human behavior.
Trend trading is a longer-term strategy where traders take positions along a cycle of price movements in a particular direction, either upward or downward.
Spread betting is a speculative strategy in which participants make bets on the price movements of a security. At its most basic level, this kind of speculation involves placing wagers on the bid [...]
Inflation and interest rates are important indicators for exchange rate trends and can help traders gain market insight.
Quantitative easing is the act of increasing the amount of money in a country's economy by that country's central bank.