Blog Posts

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 […]

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 […]