Stock Trading News

Building trading and investing algorithms involves a blend of financial theory, mathematics, programming, and data analysis. These algorithms are designed to make trading decisions based on certain criteria, which can include any number of factors based on the underlying cause-effect relationships governing the decisions. Building trading and investing algorithms is a complex, iterative process that […]

In a separate article, we covered the current status of the basic reserves today; namely, the USD, EUR, JPY, GBP, CNY, and gold, as the main few. In this article, we’ll cover reserve currency history as well as reserve currency status, the benefits it brings, and how it’s lost. We are currently in a precarious […]

The non-linear relationship between losses and the gains required to recover those losses is an important concept in portfolio management. For example: A 10% loss requires an 11% gain to recover. A 20% loss requires a 25% gain to recover. A 50% loss requires a 100% gain to recover. Mathematically, if “L” is the loss […]

Auto-callables are complex savings instruments that offer a bond-like fixed return, crafted by selling stock options.   Key Takeaways – Auto-Callables Auto-callables are savings instruments that offer fixed returns similar to bonds, created by selling stock options, primarily on broad stock market indices. They attract investors with their potential for higher yields and early redemption […]

has launched fractional shares on its xStation platform. Providing flexibility, accessibility and diversification, traders can buy small portions of stocks from the US and Europe. Key Takeaways Traders can invest in major companies like Tesla, Apple and Netflix for a fraction of their full share price. Investors can buy fractional shares in any stock, ETF […]

Market microstructure refers to the study of how trading mechanisms, rules, and protocols, as well as the actions of market participants, influence the formation of asset prices, trading volume, and trading behavior. Algorithmic trading involves using computer algorithms to automatically make trading decisions, submit orders, and manage those orders after submission. Understanding the various intricacies, […]

Several companies have dual or multiple share classes. Here are some notable examples: GOOG vs. GOOGL Alphabet Inc. (formerly Google Inc.) has two publicly traded share classes. GOOG represents Class C shares (no voting rights), while GOOGL represents Class A shares (one vote per share). BRK.A vs. BRK.B Berkshire Hathaway Inc. has two share classes. […]

Before trading foreign equities denominated in a different currency, it’s important to understand that it’s not just the returns, but returns + the currency movement. For example, if the USD has a higher nominal interest rate than the JPY, it will have implications for the forward curve of the USD/JPY currency pair. So if a […]

We trade because we expect that it’ll earn us money. Except when you have a poor day, week, or month in the markets it seems like the markets are maybe the easiest way to lose money. Losing money in the markets teaches us expensive lessons on how to improve by doing things differently. One of […]

Comparable company analysis – also called “trading comps” or “comps” in finance lingo – is another business valuation method to choose from among discounted cash flow and precedent transactions modeling. (A leveraged buyout is also technically a valuation method as well but is more specialized toward private equity firms rather than investment banking.) It is […]