• Study Resource
  • Explore
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
Oligoly
Oligoly

... strategic situations.  Strategic decisions are those in which each person, in deciding what actions to take, must consider how others might respond to that action. ...
CAPM and APT - BYU Marriott School
CAPM and APT - BYU Marriott School

...  Why is it important? • It provides a benchmark rate of return for evaluating possible investments, and identifying potential mis-pricing of investments • For example, an analyst might want to know whether the expected return she forecast is more or less than its “fair” market return. • It helps us ...
Investment
Investment

... returns on his investments by taking advantage of the increase in value over the investment period. On the other hand, the speculator hopes to take profit out of the buy-sell spreads in a short period of time. ...
Does Gender and Age Affect Investor Performance and the
Does Gender and Age Affect Investor Performance and the

... comparing the reference price to the market price, a loss is recorded only when the reference price is higher than the highest price of the day and a gain is recorded when the reference price is lower than the lowest price of the day. If no transactions have occurred, a closing price of the previous ...
Information regarding characteristics and risks associated with
Information regarding characteristics and risks associated with

... subject of trading in financial instruments markets), normally yield a positive return in the form of a dividend (in the case of shares), or interest (in the case of bonds). In addition, the price (i.e. market value) of the financial instrument may appreciate and depreciate relative to its price / m ...
Investment Securities Internal Control Questionnaire
Investment Securities Internal Control Questionnaire

... investment recommendations or decisions for the accounts of customers, who participate in the determination of such recommendations or decisions, or who, in connection with their duties, obtain information concerning which securities are being purchased or sold or recommended for such action, report ...
return on stock investment
return on stock investment

... the inflationary effect. However, nowadays money can also be earned when it goes down. In fact, more money is often earned in decreasing than in increasing movements, as these movements are almost always stronger. There are different ways of operating in the stock market, and each way has its suitab ...
WHAT IS A COMPETITIVE MARKET?
WHAT IS A COMPETITIVE MARKET?

... •Because a competitive firm is a price taker, its revenue is proportional to the amount of output it produces. •The price of the good equals both the firm’s average revenue and its marginal revenue. •To maximize profit, a firm chooses the quantity of output such that marginal revenue equals marginal ...
Chapter 4: Using Futures Markets
Chapter 4: Using Futures Markets

... be used to reveal information about future spot prices. The usefulness of forecasting future spot prices, based on current futures prices, depends upon three factors: 1. Information: the need for information about future spot prices. 2. Accuracy: the accuracy of the futures market forecasts of those ...
Robust Median Reversion Strategy for On
Robust Median Reversion Strategy for On

... Some state-of-the-art on-line PS strategies [Gyorfi et al., 2006; 2008] assume that the current best performing stocks would also perform well in the next trading day, but empirical evidence [Jegadeesh., 1990] indicates that such trends may be often violated, especially in the short term. This observ ...
Liquidity in an emerging bond market: the case of corporate bonds
Liquidity in an emerging bond market: the case of corporate bonds

... PDS market has grown rapidly in recent years, and at end-2006 Islamic securities accounted for almost half of outstanding PDSs. Financial institutions are the most active private sector issuers, followed by utilities and construction firms. The single largest issuer is Cagamas Berhad, the national m ...
Discussion Session 2
Discussion Session 2

... Countries differ in terms of labor costs and in terms of the price of intermediate inputs. To what extent those differences determine countries trade performances? Contributions by the FZ and the HBH papers What indicator of price competitiveness is the most ...
Toward a Fully Continuous Exchange
Toward a Fully Continuous Exchange

... easily and cheaply send 100 limit orders to buy or sell one share of stock each over a time period of 100 seconds (or milliseconds) can effectively participate more continuously than a trader who cannot do so because it is technologically impractical or too costly. The discreteness of today’s contin ...
Does Fundamental and Technical Analysis Reduce Investment Risk
Does Fundamental and Technical Analysis Reduce Investment Risk

... fundament analysis. Therefore, Kuo and Fan improve the value stock scoring system which was created by Piotroski (2000) for growth stock in Taiwan stock market and the performance is better than value stock. Mohanram (2005) proposes a growth stock scoring system making significant excess return for ...
Chapter 7
Chapter 7

... Value Line Averages ...
VectorVest ProTrader
VectorVest ProTrader

... in the same direction projected by the Primary Wave. This not only gives the market a chance to work out some of the extreme volatility that can occur near the open, but it also stabilizes the direction the stocks will ultimately take. ...
ETP Econ Lecture Note 14 Fall 2014
ETP Econ Lecture Note 14 Fall 2014

...  When MR > MC, increase Q  When MR < MC, decrease Q  When MR = MC, Profit is maximized. ...
WP SES
WP SES

... Lim and Brooks (2011)). In addition, even if a short-term trend is discovered, benefitting from it might be difficult. Indeed, the trend might already be over once it has been identified. A second disadvantage is that these trading strategies induce heavy trading activities. Thus, transaction costs ...
In conclusion...The basic order types (market
In conclusion...The basic order types (market

... are quoted in pairs is because in every foreign exchange transaction, you are simultaneously buying one currency and selling another. Here is an example of a foreign exchange rate for the British pound versus the U.S. dollar: The first listed currency to the left of the slash ("/") is known as the b ...
Digging Deeper into Stock Diversification
Digging Deeper into Stock Diversification

... companies around common business drivers (i.e., consumer demand, input costs, economic forces, competition) that influence business results and stock performance. Stocks in the same subsector often perform similarly, while stocks in different subsectors are often less correlated to each other. For e ...
Presentation
Presentation

... To recap 1. The issues ...
(vcm) in the derivatives market
(vcm) in the derivatives market

... International Organization of Securities Commissions (IOSCO), and is designed to prevent extreme price volatility from trading incidents such as a “flash crash” and algorithm errors, and to address systemic risks from the inter-connectedness of securities and derivatives markets. Many international ...
power point slides
power point slides

... Now we know there are two types of cholesterol, HDL and LDL. One (“bad cholesterol”) strongly increases the risk of a heart attack, the other (“good cholesterol”) weakly reduces it. Routine blood tests now report the two levels separately. Similarly, beta has two types, but in this case “good beta” ...
research on market efficiency - Securities Class Action Clearinghouse
research on market efficiency - Securities Class Action Clearinghouse

... form efficient in varying degrees. Much research has also been done to determine the mechanisms by which the pricing signal operates, and it is widely understood that correction of mispricing of a stock primarily occurs through arbitrage activity. 6 Since arbitrage is not a cost-free activity, and b ...
Agricultural Futures for the Beginner
Agricultural Futures for the Beginner

... are legally binding agreements, made through a futures exchange, to buy or sell commodities in the future.”  “They are standardized in every way with the exception of price.”  “They can protect individuals against dangerous price swings.” ...
< 1 ... 30 31 32 33 34 35 36 37 38 ... 89 >

Algorithmic trading

Algorithmic trading, also called algo trading and blackbox trading, encompasses trading systems that are heavily reliant on complex mathematical formulas and high-speed, computer programs to determine trading strategies. These strategies use electronic platforms to enter trading orders with an algorithm which executes pre-programmed trading instructions accounting for a variety of variables such as timing, price, and volume. Algorithmic trading is widely used by investment banks, pension funds, mutual funds, and other buy-side (investor-driven) institutional traders, to divide large trades into several smaller trades to manage market impact and risk.Algorithmic trading may be used in any investment strategy or trading strategy, including market making, inter-market spreading, arbitrage, or pure speculation (including trend following). The investment decision and implementation may be augmented at any stage with algorithmic support or may operate completely automatically.Many types of algorithmic or automated trading activities can be described as high-frequency trading (HFT), which is a specialized form of algorithmic trading characterized by high turnover and high order-to-trade ratios. As a result, in February 2012, the Commodity Futures Trading Commission (CFTC) formed a special working group that included academics and industry experts to advise the CFTC on how best to define HFT. HFT strategies utilize computers that make elaborate decisions to initiate orders based on information that is received electronically, before human traders are capable of processing the information they observe. Algorithmic trading and HFT have resulted in a dramatic change of the market microstructure, particularly in the way liquidity is provided.Profitability projections by the TABB Group, a financial services industry research firm, for the US equities HFT industry were US$1.3 billion before expenses for 2014, significantly down on the maximum of US$21 billion that the 300 securities firms and hedge funds that then specialized in this type of trading took in profits in 2008, which the authors had then called ""relatively small"" and ""surprisingly modest"" when compared to the market's overall trading volume. In March 2014, Virtu Financial, a high-frequency trading firm, reported that during five years the firm as a whole was profitable on 1,277 out of 1,278 trading days, losing money just one day, empirically demonstrating the law of large numbers benefit of trading thousands to millions of tiny, low-risk and low-edge trades every trading day.A third of all European Union and United States stock trades in 2006 were driven by automatic programs, or algorithms. As of 2009, studies suggested HFT firms accounted for 60-73% of all US equity trading volume, with that number falling to approximately 50% in 2012. In 2006, at the London Stock Exchange, over 40% of all orders were entered by algorithmic traders, with 60% predicted for 2007. American markets and European markets generally have a higher proportion of algorithmic trades than other markets, and estimates for 2008 range as high as an 80% proportion in some markets. Foreign exchange markets also have active algorithmic trading (about 25% of orders in 2006). Futures markets are considered fairly easy to integrate into algorithmic trading, with about 20% of options volume expected to be computer-generated by 2010. Bond markets are moving toward more access to algorithmic traders.Algorithmic trading and HFT have been the subject of much public debate since the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission said in reports that an algorithmic trade entered by a mutual fund company triggered a wave of selling that led to the 2010 Flash Crash. The same reports found HFT strategies may have contributed to subsequent volatility by rapidly pulling liquidity from the market. As a result of these events, the Dow Jones Industrial Average suffered its second largest intraday point swing ever to that date, though prices quickly recovered. (See List of largest daily changes in the Dow Jones Industrial Average.) A July, 2011 report by the International Organization of Securities Commissions (IOSCO), an international body of securities regulators, concluded that while ""algorithms and HFT technology have been used by market participants to manage their trading and risk, their usage was also clearly a contributing factor in the flash crash event of May 6, 2010."" However, other researchers have reached a different conclusion. One 2010 study found that HFT did not significantly alter trading inventory during the Flash Crash. Some algorithmic trading ahead of index fund rebalancing transfers profits from investors.
  • studyres.com © 2025
  • DMCA
  • Privacy
  • Terms
  • Report