Analyzing Alpha

Dark pools are an alternative trading system (ATS) that allows institutional investors to conduct massive trades without disclosing details on the public exchange unless executed.

Volume Weighted Average Price (VWAP) is the average trading price of a security throughout the day using both price and volume. It provides traders an insight into the price trend where volume is

Time-weighted average price (TWAP) calculates the weighted average price of the security over a particular time period. VWAP is often implemented as an order execution strategy to execute massive trades by breaking them

ETF Arbitrage is a strategy through which traders earn a profit by exploiting the price discrepancy between an ETF and its underlying assets or related securities.

Volatility Arbitrage is a form of statistical arbitrage used in options trading. This trading technique aims to exploit the difference between an option’s implied volatility the underlying asset’s actual volatility.

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

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

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

Information arbitrage identifies market-moving information and trades on it before the financial markets fully recognize its impact. The disparity in knowledge across markets and its timing creates information arbitrage opportunities. Information arbitrageurs discover

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

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

The stochastic momentum index and the stochastic oscillator are technical analysis tools used by traders to determine momentum in the market. While similar, there are some distinct differences between the two.

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

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.

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

Crowdsourced trading uses a group’s combined intelligence and expertise, whose members may come from anywhere to improve trading decisions.