Trading Tools and Strategies

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  • What Is Rollover In Futures Trading?

    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 unique to each product, and it produces a substantial impact upon volatility and price action within the marketplace. The days surrounding an individual contract's rollover are especially important in the area of risk management. The full attention of investors engaged in…

  • Triangular Arbitrage

    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 buys cheaper assets and sells more expensive assets at the same time to take a profit with no net cash flow. In theory, the practice of arbitrage should require no capital and involve no risk. In practice, however, attempts at arbitrage…

  • The Basics Of Exit Strategies

    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 a rationale and strategy for entering the market when asset prices are low. But what about the other end of the trade? When is it an appropriate time to get out? Many market participants and expert traders…

  • What Is Spread Betting?

    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 and ask prices provided by a spread-betting company. Because spread betting does not involve buying or selling the underlying asset, it is a type of financial derivatives trading. Participants are able to target a vast array of…

  • Risk-On Trading

    Why Learn About Risk-On Trading? Forex traders may benefit from learning about risk-on trading, as being aware of such strategies could help them more efficiently understand market shifts. Some investors believe that the broader asset markets, including those devoted to currencies, revolve around shifts in overall sentiment and how these fluctuations motivate investors to buy certain securities instead of others. Key Role Of News Many believe that the release of…

  • Risk-Off Trading

    Why Learn About Risk-Off Trading? Some investors harness risk-off trading in an effort to meet their investment objectives. This particular strategy hinges on the broader sentiment of the global asset markets, with the belief that the rising or falling confidence of investors can motivate them to favour one asset class over another. By learning about risk-off trading, investors can obtain one more tool for use in their arsenal. News And…

  • Bear Currency Spreads

    A bear currency spread—like its counterpart, a bull currency spread—involves buying an option (the long leg) for a particular currency and selling an option (the short leg) for the same currency and expiration at a different exercise price.

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