Stock Trading News

Event-driven strategies in financial markets are trading or investment strategies that seek to exploit pricing inefficiencies that may occur before or after a corporate event takes place. These strategies are primarily based on the premise that corporate events can lead to stocks or assets being mispriced and can provide opportunities for traders/investors to earn above-average […]

Network theory and percolation models offer a lens through which we can understand various phenomena in finance and trading. These concepts, derived from mathematics and physics, provide quantitative frameworks for the interconnectedness and vulnerabilities within financial markets. Below, we look into the key concepts, applications, and how traders can leverage network theory and percolation in […]

Random Matrix Theory (RMT) is a statistical framework used to analyze the properties of matrices with random elements. In finance and trading, RMT is useful for analyzing the structure of correlations among assets in large portfolios, which can help with understanding why assets move the way they do, risk management, and portfolio optimization.   Key […]

Complex geometry – particularly fractal geometry and other advanced mathematical concepts – have unique applications in finance, markets, and trading. These applications help model the patterns and structures in financial data in ways that aren’t normally possible (i.e., integrating the use of complex numbers) to understand market behaviors, predict trends, and manage risks more effectively. […]

Extended Mathematical Programming (EMP) is a framework that allows for the formulation and solution of complex optimization problems by integrating various programming paradigms, such as quadratic, nonlinear, mixed integer, and stochastic programming. This method extends beyond traditional linear and nonlinear programming techniques, which allows for a more nuanced handling of real-world financial scenarios.   Key […]

Nonlinear programming (NLP) is a mathematical optimization technique for solving complex problems where the objective function or the constraints are nonlinear. In trading and investing, NLP is used in portfolio optimization, risk management, and identifying trading strategies that maximize returns or minimize risk.   Key Takeaways – Nonlinear Programming in Trading & Investing Better Optimization […]

Quadratic programming (QP) is a type of mathematical optimization used in portfolio management and trading/investment strategies. Its primary function is to optimize asset allocation to achieve the best possible risk-adjusted returns.   Key Takeaways – Quadratic Programming Optimizes Portfolio Allocation – Quadratic programming helps determine the optimal asset mix to maximize returns for a given […]

Hidden variables in finance refer to elements that aren’t directly observable or quantifiable but significantly influence financial markets and investment outcomes. These variables often exist beneath the surface of standard financial analyses, impacting asset performance, market movements, and risk assessments.   Key Takeaways – Hidden Variables in Finance Hidden variables in finance, like central bank […]

Pepperstone has begun 2024 by expanding its roster of European equities, adding big names like LVMH, Nestle and AB InBev. Key Takeaways Over 70 new stock CFDs are available to trade from French, Belgian and Swiss markets. There is no spread markup on share CFDs, while commissions are competitive at 0.1%. The new stocks can […]

Bayesian Efficiency, based in Bayesian probability theory, is used in financial modeling and decision-making. It involves updating the probability of a hypothesis as more evidence or information becomes available. In finance, this concept is applied to continuously refine trading strategies and risk assessments based on incoming data.   Key Takeaways – Bayesian Efficiency Bayesian Efficiency […]