Blog Posts

Sentiment arbitrage is a trading strategy that exploits the difference in market sentiment between various groups of traders/investors, typically retail and professional traders. By analyzing and predicting the sentiment, traders can decisions to capitalize on any discrepancies in market perceptions. The wider the divergence, potentially the greater the opportunity.   Key Takeaways – Sentiment Arbitrage […]

NAV Discount Arbitrage Trading is a specialized strategy used by traders to exploit the price discrepancies between the Net Asset Value (NAV) of a fund and its market price. This strategy is commonly applied to closed-end funds (a type of mutual fund that doesn’t continually issue new shares), where the market price of the fund […]

Multi-asset spread trading is a trading strategy involving the simultaneous buying and selling of different assets to capitalize on the price differences between them. This technique tries to exploit relative price movements rather than outright price direction. This makes it a popular approach among professional traders and hedge funds looking for non-correlation to traditional asset […]

Geopolitical events can create significant volatility in financial markets, which can impact asset prices, currency values, and overall trading returns.  To protect against these risks, traders use various hedging strategies.  This article takes a look at how these hedging strategies can reduce geopolitical risks.   Key Takeaways – Geopolitical Risk Hedging Strategies Diversify Portfolios Spread […]

Credit spread arbitrage is a trading strategy used in the fixed-income and derivatives markets, where a trader look to profit from the difference (spread) between two credit instruments. The strategy involves simultaneously buying and selling related securities to exploit price inefficiencies and differences in credit spreads. True credit spread arbitrage is trading price discrepancies between […]

Volatility arbitrage is a trading strategy that tries to profit from the difference between the forecasted or implied volatility of an asset and its actual future volatility.    Key Takeaways – Volatility Arbitrage Market Neutral Strategy Volatility arbitrage tries to profit from the difference between expected and actual volatility. Options are typically used to create […]

Portfolio tilt involves adjusting the asset allocation within a portfolio to reflect the trader’s expectations about future market conditions. This shift, often toward specific asset classes or sectors, allows the trader to position their portfolio to potentially benefit from anticipated market trends. Portfolio tilt is commonly done in the context of “base” portfolio that’s well-structured […]

The Series 7 license, administered by FINRA, qualifies individuals to sell a wide range of securities including stocks, bonds, options, and mutual funds. It requires an exam on various financial topics.  The Series 63 license focuses on state securities laws and is necessary for representatives who sell securities within specific states. This ensures they understand their […]

The Chartered Financial Analyst (CFA) program is a globally recognized professional designation offered by the CFA Institute. The program covers a broad range of topics including: Ethical and professional standards Quantitative methods Economics Financial reporting and analysis Corporate finance Equity investments Fixed income Derivatives Alternative investments Portfolio management and wealth planning Key Takeaways – CFA […]

The Chartered Market Technician (CMT) designation is a professional credential awarded to individuals who have demonstrated proficiency in technical analysis and trading techniques. The CMT program is structured to provide a strong understanding of market behavior and technical trading strategies.   Key Takeaways – Chartered Market Technician (CMT) Enhanced Technical Analysis – Master trend analysis, […]