Decoding Alpha: Where Data Science Meets Wall Street.
Stocks are an asset that gives you a share of ownership of the company when purchased. Options are contracts that offer a trader the right but not an obligation to buy or sell the underlying assets. Equity Companies raise capital …
A company issues Common Stock and Preferred Stock to raise capital for its expansion. Common Stockholders enjoy Voting rights while Preferred Stockholders do not. Common Stock offers capital appreciation and dividends, while Preferred Stock promises capital protection and fixed coupon …
Information arbitrage identifies market-moving information and trades on it before the financial markets recognize its impact. The disparity in knowledge across markets and its timing creates information arbitrage opportunities. Information arbitrageurs discover market-moving information from offbeat sources of alternative data. …
Arbitrage is a trading strategy that exploits an assets’ price or information discrepancies for profit. These differences arise due to market inefficiencies. Market neutral strategies such as buying and selling the same investment on two different exchanges and exploiting the …
Social Information Arbitrage is a form of arbitrage trading that scrutinizes trending topics to identify price-impacting information and exploits that information before the market factors it in thoroughly. Traders can spot such insightful trends on various social media platforms, Google …
The Stochastic RSI (Stoch RSI) is a technical analysis indicator derived from the standard RSI indicator. It identifies potential overbought and oversold conditions in the market and can assist with identifying current market trends. What Is the Stochastic RSI? The …
The stochastic momentum index and the stochastic oscillator are technical analysis tools traders use to determine momentum in the market. The stochastic oscillator is a simple indicator showing directional momentum based on its recent closing price. The stochastic momentum index …
Cash accounts and margin accounts are the two main types of brokerage accounts. While there are many differences between the two, the most notable is that a margin account allows you to borrow money and trade on margin while a …
Global Macro is an investment strategy typically employed by a hedge fund or mutual fund that picks its holdings through informed notions about various countries’ macroeconomic and geopolitical developments. Global Macro funds often invest across asset classes like equities, bonds, …
The stochastic momentum index (SMI) is a technical analysis indicator that shows price momentum by calculating its closing price distance relative to its median high-low price range. The SMI attempts to improve upon the traditional stochastic oscillator. What Is the …