• 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
3. Lecture III: Multi-Asset Options In this lecture we will generalize
3. Lecture III: Multi-Asset Options In this lecture we will generalize

FOR IMMEDIATE RELEASE Tensor Expands Representation in
FOR IMMEDIATE RELEASE Tensor Expands Representation in

... marketing and sales success of Tensor’s web offset products in these important and fast developing markets,” said Safak Okaygün, Managing Director of Pasifik Trading. “Tensor equipment, with an excellent price performance ratio, is unique in the single-wide market offerings and deserves a strong pre ...
Understanding the Profitability of Pairs Trading
Understanding the Profitability of Pairs Trading

... only five pairs never open. The average pair opens 2.29 times during its half-year trading period. Panel C shows a single pair earns 3.879 bp per day on average.4 Since our portfolio is simply an equally weighted average of the twenty constituent pairs, 3.879 bp is the daily portfolio return as well ...
IMPERFECT COMPETITION IN A MULTI
IMPERFECT COMPETITION IN A MULTI

... We employ the informational assumption that market makers can observe all arder flows, and so portfolio diversification arises in this model for strategic reasons. Given correlated fundamentals, market makers can potentially learn about every security from each arder flow. This causes even a risk ne ...
Knowledge Center
Knowledge Center

... What is a commodity market? How old are the commodities market? What are commodity exchanges? What are the different types of commodities that are traded in these markets? What are the characteristics of the Exchange Traded markets? What is a Derivative contract? What is a forward contract? What are ...
IPSA - Santiago Exchange
IPSA - Santiago Exchange

... This fact sheet is intended for general information only and is not an investment recommendation. It is the intention of the Santiago Stock Exchange to provide accurate and truthful information as of the date specified; however, no assurance or guarantee can be given as to the accuracy, timeliness o ...
Foundation Medicine, Inc.
Foundation Medicine, Inc.

... The sales reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on August 19, ...
Monopoly - ComLabGames
Monopoly - ComLabGames

... payment depend on his type. However holding auctions with multiple rounds (for example restricting entry to qualified bidders in certain auctions) segments the market and thus enables price discrimination. 2. A firm with a monopoly in two or more markets can sometimes increase its value by bundling ...
Investing in Stocks Chapter Sixteen
Investing in Stocks Chapter Sixteen

... securities through an investment bank, or other representative, from the issuer of those securities. – An investment bank is a financial firm that assists corporations in raising funds, usually by helping to sell new security issues. – An IPO occurs when a corporation sells stock to the general publ ...
RBGD23 Insert 7_10_17_Fact Sheet
RBGD23 Insert 7_10_17_Fact Sheet

... An investment in this unmanaged unit investment trust should be made with an understanding of the risks involved with owning common stocks, such as an economic recession and the possible deterioration of either the financial condition of the issuers of the equity securities or the general condition ...
Hedge Accounts - Dorman Trading
Hedge Accounts - Dorman Trading

... (3) Non-Enumerated Cases. Upon specific request made in accordance with section 1.47 of the regulations, the Commission may recognize transactions and positions other than those enumerated in paragraph (2) of this section as bone fide hedging in such amounts and under such terms and conditions as it ...
06-finance - Eric Rasmusen
06-finance - Eric Rasmusen

... ENTREPRENEURS are people who start businesses. They usually use their own money, but often they sell shares to VENTURE CAPITAL FIRMS. Eventually, firms get big enough to need more capital and they GO PUBLIC-- they sell shares to the general public in an INITIAL PUBLIC OFFERING (IPO). ...
Stock Market Game Workshop
Stock Market Game Workshop

... minutes ...
On Chinese Government`s Stock Market Rescue Efforts in 2015
On Chinese Government`s Stock Market Rescue Efforts in 2015

... the Chinese authorities have gradually relaxed the restrictions on margin trading. The newly relaxed rules still included an important safeguard, though: a 2-to-1 margin requirement said that only half of invested funds could be borrowed. The investor needed to put up the rest of the funds herself. ...
Trading Strategies to Exploit Blog and News Sentiment
Trading Strategies to Exploit Blog and News Sentiment

... possible reasons (1) Our Twitter database only contains data for 0.5 year, and datasize is small and thus the result is less accurate, and (2) The sentiment of Twitter is more persistent between neighbor days. To dig this problem further, we show polarity’s Lag-k-Day autocorrelation for the four med ...
Primary Market Liquidity Vs. Secondary Market Liquidity
Primary Market Liquidity Vs. Secondary Market Liquidity

... up in accordance with the Directive 2003/71/EC (the “Prospectus”). The Prospectus has been passported from Ireland into the United Kingdom and is available on the websites of the Central Bank of Ireland and the Issuer. Please read the Prospectus before you invest in any Exchange Traded Products (“ET ...
Securities Markets
Securities Markets

... Securities Markets Securities markets’ performance in terms of information-processing, risk management and liquidity-provision functions improved further in 2005. In December 2005, there were 2,540 companies, where stock market trading took place on at least two-thirds of the days. These companies h ...
Seasonality of Stock Market Returns
Seasonality of Stock Market Returns

... The term seasonality is extremely broad. However, it’s relation to the stock market’s returns are directly related. For when there is some kind of irregular activity As stated previously seasonality is the short term, however regular variances that occur over the course of a year. Whether it’s a cha ...
Trading Behaviors Under Floating Exchange Rate System: An Analysis of South Korea’s Financial Market
Trading Behaviors Under Floating Exchange Rate System: An Analysis of South Korea’s Financial Market

... economies. They find that the direction of causality can vary according to the period of study. When the entire four years of the Asian crisis (1997-2000) are analyzed, they find that, apart from Hong Kong, all other countries indicate evidence that stock prices Granger cause movements in the exchan ...
stocks, bonds and inflation: a long-term
stocks, bonds and inflation: a long-term

... This graph represents the hypothetical growth of a $1 investment in four traditional asset classes, as well as inflation, over the period from January 1, 1960, through December 31, 2002. All indicated returns are total returns in Canadian dollars as at December 31, 2002. This graph is for illustrat ...
Option Concepts Homework II
Option Concepts Homework II

... d. Replicating portfolio shown on lattice. Must use risk-neutral probabilities and risk-free rate. e. Decision-Tree value = 4.73, which is less than the CORRECT value of 5.88. Market is pricing the option cheap, so buy it. How? SELL the replicating portfolio of {-0.00883S + 6.90M} and collect 5.88, ...
Professor Venkatesh Panchapagesan
Professor Venkatesh Panchapagesan

... outside India. Given that markets fail periodically, students will also study why they do so by examining some modern systemic and endemic market crises. A key feature of this course is the discussion of current news events at the start of each class, with students sometimes leading them, that is in ...
Day Trading Disclosure Day traders rapidly buy and sell stocks
Day Trading Disclosure Day traders rapidly buy and sell stocks

... in the options markets; the factors affecting the values of the various underlying interests; the factors affecting the volatility, liquidity and efficiency of the option markets or of other markets or other factors that may affect the pricing of particular options. An option holder runs the risk of ...
ch.11
ch.11

... Links to Presentation Plus! features such as Graphs in Motion, Charts in Motion, and figures from your textbook are located at the bottom of relevant screens. ...
CHAPTER 5 THE FOREIGN EXCHANGE MARKET
CHAPTER 5 THE FOREIGN EXCHANGE MARKET

... then dm/ = dm2/US$  .55/US$ = dm3.636/  ...
< 1 ... 49 50 51 52 53 54 55 56 57 ... 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