Stock Trading News

Dividend Policy

Dividend policy refers to the guidelines a company uses to decide how much of its earnings it will pay out to shareholders in the form of dividends. Companies have a range of dividend policies to choose from, and the choice depends on a multitude of factors. The selection of a dividend policy has a significant […]

Emerging Market Equities

Emerging market equities are a popular option for traders and investors, given their higher potential. Known for its potential to offer higher returns compared to developed markets, the expected premium for investing in emerging versus developed equity markets is usually 1-3% per year. In other words, if you put your money in EM equities, over […]

Multi-Asset Volatility Arbitrage (Trading Strategy)

Though less understood than traditional directional trading strategies, multi-asset volatility arbitrage (MAVA) involves harnessing profiting from volatility in the markets. At its core, multi-asset volatility arbitrage is a strategy that relies on the volatility differentials of various asset classes. Below we look into the details of multi-asset volatility arbitrage, its benefits, risks, and how traders […]

S&P 500 Adjusted for Discount Rates

The S&P 500 is a benchmark index, comprising 500 of the largest US publicly traded companies. It represents the performance of the stock market by reporting the risks and returns of the biggest companies. Investors use it as the benchmark of the overall market, to which all other investments are compared. Below we’ll look at […]

Fama-French 3- and 5-Factor Model

The Fama-French three-factor model is a statistical model formulated in 1992 by Eugene Fama and Kenneth French, both then colleagues at the University of Chicago Booth School of Business. Eugene Fama, a 2013 Nobel Memorial Prize in Economic Sciences laureate, designed this model to help predict and understand stock returns. The three factors in this […]

Carhart 4-Factor Model

The Carhart four-factor model is an approach to portfolio management that adds an extra dimension to the widely recognized Fama–French three-factor model. First proposed by Mark Carhart, this advanced model integrates a momentum factor into traditional asset pricing of stocks. This approach broadens the analytical parameters, offering a more comprehensive and detailed understanding of market […]

H-Model (Dividend Discounting Method)

The H-Model is an advanced method of dividend discounting that traders and investors use to value stocks. Unlike more rudimentary models, the H-Model accounts for a gradual change in dividend growth rate, making it more realistic and relevant in many cases.   Key Takeaways – H-Model The H-Model is an advanced dividend discounting method used […]

Why AI & Machine Learning Will Never Solve the Markets

Artificial intelligence (AI) and machine learning (ML) have been touted as powerful tools for analyzing financial markets, with the potential to revolutionize the way traders/investors make investment decisions. While AI and ML have shown great promise in some areas, there are inherent limitations that make it unlikely that they will ever be able to fully […]

eToro Offers New Stock CFDs For Extended Hours Trading

eToro is launching out-of-hours trading on 30 large US stocks, including Tesla, Amazon and Apple. Investors can react to news events in real-time and trade around their busy schedules. The latest stock CFDs are available on the eToro platform under the .EXT ticker. Pre-Market Trading Opportunities Initially, 10 stocks will be available as part of […]

XTB Launches Share Dealing In The UK

XTB, a top-rated brokerage, is introducing direct stock trading in the United Kingdom. Investors can access major exchanges, including the London Stock Exchange (LSE) and New York Stock Exchange (NYSE). The share dealing offering will be welcome news to longer-term traders and passive investors. Fresh Investment Opportunities Until now, clients in the UK could only […]

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