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Showing results for tags 'active trading'.
Found 290 results
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Auction Rates are important in debt-related securities and can allow investors to assess their potential returns. These auctions tend to smooth interest rate volatility and this makes these investments less risky relative to other asset types.
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Since these auctions generally involve the acquisition of preferred stock, buyers are often larger investors looking to take major stakes in a company. These auctions are a good way of measuring the real market yield for safer assets.
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When asset values are in decline, At-Or-Better orders are unlikely to trigger because buyers are less likely to enter into the market. Because of this, uptrends are generally preferable for these types of orders.
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Traders tend to use At Limit during market periods meeting certain conditions. Examples include times of enhanced price volatility or situations when a large number of orders will be placed at once.
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At Best orders tend to be executed more quickly than limit orders (or other types of conditional orders). Traders are only able to buy or sell an asset based on the available market price at a given time, so traders will look for efficient platforms in order to avoid paying less favorable prices when entering into positions.
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As the trading environment becomes increasingly computer-based, instances of arbitrage are increasingly rare. Because of this, Arbitrageurs must enter and exit their positions quickly before the exploited inefficiency becomes apparent to more traders.
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The Anti-Martingale System is based on the idea that it is best to capitalize on winning trades by increasing position sizes afterwards. This is different from the Martingale system, which requires that traders double their trade sizes after losing trades are seen.
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Anonymous Trading is often sought by well-known investors that are looking to place large orders without attracting the attention of the market. Not all platforms allow for this approach but one common example is the London Stock Exchange.
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In prior years, the AMEX was one of the chief competitors to the NYSE but has since been overcome by the NASDAQ. Most ofthe trading activity seen on the AMEX is in ETFs, small cap stocks and derivatives.
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Allocation Notices are necessary because a large majority of contracts in the options market expire worthless. Because of this, options sellers are not always aware of times when contracts are exercised.
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In order to keep markets functioning smoothly, Affirmative Obligations are usd so that buy and sell orders can match properly. Without these provisions, market gaps would be much more common and volatility would generally be higher.
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Practitioners of Active Management in the markets will avoid using the Efficient Market Hypthesis, as they believe that human-oriented starategies can outperform the market. The opposite of Active Management is called "indexing," or "passive management."
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The Absolute Return Index is used by stock traders as a way of comparing the performance of individual hedge funds with that of the wider market. When a hedge fund performs weakly against the Absolute Return Index, is it not considered to be suitable for investment.
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The 2% Rule is a rough way of managing risk so that traders do not experience unexpected losses that are insurmountable. Conservative traders might risk less than 2% while more aggressive traders might choose to risk more.
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Day traders tend to focus on technical analysis rather than on long term trends based on fundamental forecasting. Intraday price fluctuations in the forex market develop quickly and many Day traders will implement trading software to identify relevant chart patterns and establish trades. Stop loss levels and profit target tend to be smaller than what is seen in longer term trades, because daily price activity can change in unanticipated ways.
