Blog Posts

Crossing networks are alternative trading systems (ATS) that offer an alternative trading venue to traditional exchanges. They offer a platform where buyers and sellers can directly exchange assets, cutting out the middleman. The primary function of a crossing network is to match buy and sell orders without routing them through a public exchange. This means […]

Straight-Through Processing (STP) is a streamlined method of completing transactions that’s common in securities trading. It eliminates manual intervention by automating every step, from initiation to final settlement. In essence, it’s like a digital assembly line for data – for faster, more efficient, and less error-prone operations. For day traders, STP enables rapid trade execution […]

Electronic Communication Networks (ECNs) are digital trading venues that directly connect buyers and sellers. They eliminate traditional intermediaries and help improve market transparency and efficiency. They provide real-time data on prices and orders, facilitating fast, cost-effective trading, and are adaptable to various asset classes including cryptocurrencies. Originating in the 1990s, ECNs have transformed financial markets […]

Multilateral Trading Facilities (MTFs) are flexible trading venues that match buyers and sellers of financial instruments outside of traditional exchanges. They’re like the European equivalent of Alternative Trading Systems (ATS). They operate under European Union directives and are characterized by less stringent regulations, which allows them to innovate and tailor services to specific market needs. […]

Alternative Trading Systems (ATS) are reshaping modern financial trading by offering competitive advantages over traditional exchanges. They offer value-add to markets through lower fees, technological innovation, and specialized services tailored to specific trading strategies. At the same time, ATSs also introduce challenges such as market fragmentation and regulatory complexities.   Key Takeaways – Alternative Trading […]

Trading venues are specialized platforms where financial instruments such as stocks, bonds, commodities, and derivatives are bought and sold. These venues vary in structure, regulation, and the type of assets traded, catering to different traders/market participants and trading strategies. Key types include stock exchanges, commodity exchanges, electronic communication networks (ECN), and alternative trading systems (ATS). […]

Trading is filled with strategies aimed at maximizing returns. One of the most debated of these strategies is market timing. Market timing involves attempting to predict the ups and downs of the market, buying assets when they are deemed undervalued and selling them when they reach a higher price point. The allure is obvious – […]

Leverage allows traders to amplify their potential gains from relatively small price movements in the markets. Nevertheless, when used imprudently, leverage and debt narrow the range of market outcomes that are acceptable. Striking the right balance between the judicious use of leverage and prudent risk controls is critical for the longevity and success of day […]

Mosaic theory is an analytical method used in securities analysis. It involves the assimilation of different types of information – public, non-public, and non-material – to create a detailed and wide view of a company’s value or trade/investment potential. The concept is based on the idea of traders and analysts piecing together various bits of […]

Professional traders and hedge funds use various sophisticated currency trading strategies. The strategies used often depend on the traders’ market outlook, risk appetite, and time horizon.   Key Takeaways – Currency Trading Strategies Used by Professional Traders & Hedge Funds We cover the following currency trading strategies, categorized as follows: Fundamental Analysis-Based Strategies Quantitative Analysis-Based […]