Trading News

Magical Formula Investing is a financial market strategy developed by Joel Greenblatt, a well-respected finance professor and fund manager. This method combines two key financial metrics: earnings yield and return on capital The goal is to systematically identify high-quality companies at bargain prices. We’ll look at the approach and also distill how day traders and […]

Trading offers the potential for financial gains and an intriguing, relatively autonomous career. But before diving in, one needs initial capital, commonly known as a bankroll. Building and managing this initial investment is the foundation of long-term trading success.   Key Takeaways – How To Develop a Bankroll for Trading Foundation for Success – Building and […]

In options trading, synthetic positions offer traders flexibility and the opportunity to mimic the outcomes of traditional stock trading strategies using a combination of options contracts.  Essentially, synthetic long and synthetic short strategies let traders simulate the risk and reward profiles of buying or shorting a stock, respectively, without actually owning or borrowing the underlying […]

Portfolio margin is a method of determining margin requirements that brokers use to evaluate the overall risk of a client’s portfolio. Unlike traditional margin accounts, which typically calculate requirements based solely on individual securities, portfolio margin accounts use a risk-based model. This approach looks at the entire portfolio’s potential for loss in varying market scenarios. […]

The music industry has massive underlying demand and could be of interest for traders or investors looking to get in on a secular trend. YouTube’s most popular videos and most viewed videos ever are disproportionately music videos. The top ones obtain billions of views, garnering popularity that most forms of content could never fathom even […]

OANDA Labs Prop Trader, part of OANDA, has enhanced its funded trading accounts, offering profit shares of 80% with less stringent challenge conditions, meaning traders could get funded within 3 days. OANDA is one of the few trusted brokers to offer prop trading services, though it’s important to note only skilled traders will get funded. […]

Let’s look at some advanced trading strategies. Some of these strategies might not be directly pursuable for most traders – though some are – but they can show the variety of what’s possible, provide awareness, and inspire creativity: Mortgage Basis Trade (Long/Short MBS Pools vs. TBA) This strategy involves taking positions in mortgage-backed securities (MBS) […]

Arbitrage exploits price discrepancies in identical assets in different markets to secure risk-free profits (given perfect conditions). The “arb” strategy hinges on the ability to execute transactions quickly to exploit these temporary mispricings. This makes it a low-risk, low-return approach. Relative value strategies focus on identifying price mismatches between related but not identical assets. It […]

Moneta Markets has expanded its suite of index CFDs with the Singapore 20 Index (SGP20) and Taiwan RIC Index (TWINDEX). The broker now provides opportunities on three of the four ‘Asian Tigers’ – Singapore, Taiwan and Hong Kong – with South Korea being the fourth. Key Takeaways The SGP20 and TWINDEX are available on the […]

Financial markets are immense but small at the same time. While there are hundreds of thousands of things you can buy, there are really only a few standard asset classes that people look to for yield: cash bonds stocks Things like private assets and real estate will tend to fall in the bonds (credit) or […]