Instructions to an agent or broker to buy or sell a security at the price obtainable at the time the trading opens, otherwise to cancel the order.It is an at the opening order is a way for an investor to secure a position at the opening of a trading session.A trader can place a market at the opening order or a limit at the opening order. A market at the opening order is an … [Read more...]
What is a Quant Fund?
An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure "quant shop" the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative … [Read more...]
Mechanical Stock Investing
Mechanical Investing Buying and selling stocks according to a screen based on predetermined criteria, usually with the help of technical indicators such as relative strength or momentum. This method allows traders to enter transactions without emotion and backtest their strategies by using historical data from any time period. For example, one of the most common … [Read more...]
High-Frequency Trading – HFT Explained
A program trading platform that uses powerful computers to transact a large number of orders at very fast speeds. High-frequency trading uses complex algorithms to analyze multiple markets and execute orders based on market conditions. Typically, the traders with the fastest execution speeds will be more profitable than traders with slower execution speeds. As of 2009, it is … [Read more...]
What Does Stock Screener Mean?
A tool investors can use to filter stocks given certain criteria of their choice. By using a stock screening tool an investor is able to follow a strict set of criteria that he or she requires prior to investing in a company. For example, an investor could screen stocks by entering the following criteria: "listed on the NYSE", "in the telecommunications industry", "has a P/E … [Read more...]