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- Spread Trading
SPREAD TRADING AND MACROECONOMIC FACTORS
The strategy of spread trading is based on searching price convergences and divergences for similar instruments. Prices of financial instruments may react simultaneously on the same economic factor, but the speed and sensitivity of the reaction may differ.
Portfolio Quoting Method becomes indispensable to identify such patterns in deep histories. To implement the strategy, it is enough to build a chart that will display relative changes in prices, their speed and degree of sensitivity to common economic factors.
The relative performance of Japanese stocks compared with US stocks can be easily analyzed by applying the Personal Composite Instrument (PCI) technology based on PQM Method. To get access to PCI technology...
Currently, the world's main stock indices move roughly identically. The S&P500, DJI and Nasdaq 100 have fallen by about 8.5% since the beginning of 2016. The German stock index DAX in dollar value has...
Good afternoon, dear investors. In this overview we would like to introduce an instrument of spread trading, composed on the basis of two agricultural commodity futures, using the PQM model. First of...
Good afternoon, dear investors. In this review we continue to acquaint you with the opportunities of using the synthetic instrument ( technically - personal composite instrument PCI), based on the PQM...
Today we want to bring to your attention another synthetic instrument, implemented in NetTradeX trading terminal. This time let us use trading instruments of ''Commodities'' section. We take two agricultural...
In the previous review , we introduced you to the capabilities of the NetTradeX terminal for creation of synthetic instruments through Portfolio Quothing Method PQM. As an example, we used the shares...
We offer NetTradeX trading terminal capabilities for creating synthetic instruments through PQM method. Let us examine spread trading between two stocks. At first, it is necessary to analyze the financial...
Eurozone consists of nearly two dozens of countries, each having its own economic characteristics. The sovereign debt crisis that erupted in the region has brought down stock markets of all countries....
Financial markets have cyclical nature, with investment capital flowing from gold and silver to "paper" assets and vice versa. Worldwide, investors prefer to keep their funds in the form of precious metal...
Recently, the technology of pair trading has become greatly popular among traders. Pair trading, also known as statistical arbitrage or spread trading is a strategy which allows the trader to use anomalies,...
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