This strategy essentially puts you on the same side as inter-bank players with access to order flow. The strategy has an even higher probability of success when other important support or resistance levels, such as Simple Moving Averages, Fibonacci levels or Bollingers, converge at the figure.The transparency and round-the-clock trading characteristic of the currency market … [Read more...]
Stock Replacement Strategy
It is an investment strategy that attempts to mimic the returns of a certain asset or group of assets by using a combination of different derivatives rather than buying the individual shares in the market. It is an options strategy that can be both simple and complex with the versatility to cater to the needs of amateur options traders and professional options traders. The main … [Read more...]
Scalping Investment Strategy
Scalping, when used in reference to trading in securities, commodities and foreign exchange, may refer to (i) a fraudulent form of market manipulation or (ii) a legitimate method of arbitrage of small price gaps created by the bid-ask spread. Scalpers attempt to act like traditional market makers or specialists. To make the spread means to buy at the Bid price and sell … [Read more...]
Gapping Investment strategy
Gapping strategy is taking advantage of a time difference. An example is borrowing short to lend long because that gives a better interest rate return for the lender (in a normal market where short-term rates are lower than those in the longer term).This strategy gives the lender an overall better interest rate as short rates are generally lower than long rates. Also in … [Read more...]
Global Macro Strategy
The term global macro is used to classify the strategy of certain hedge funds—those that take positions in financial derivatives and other securities, on the basis of movements in global financial markets. The strategies are typically based on forecasts and analysis about interest rates trends, movements in the general flow of funds, political changes, government policies, … [Read more...]