Volume Weighted Average Price (VWAP) is the average trading price of an asset throughout the day using price weighted by volume. It provides traders an insight into the price trend where volume is highest. Institutions and traders use VWAP to …
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. This process eventually results in an equilibrium price as the ETF shares’ value converges …
Due to poor investment timing, the average stock investor trails the market’s performance. The psychological forces of missing out (FOMO) are strong but lead to weak investment returns. An intelligent investor can utilize ETF fund flows to help time the …
Volatility Arbitrage is a form of statistical arbitrage used in options trading. This trading technique exploits the difference between an option’s implied volatility and the underlying asset’s actual volatility. Vol Arb is usually implemented in a delta-neutral portfolio that includes …
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 …
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, …