CFD Pair Trading Strategy
What is Pair Trading? Back in the 1980’s quantitative equity traders realized that stocks within the same sector would move more or less in step with each other. That would mean for example when Citibank shares rose, the stocks of other major financial institutions would usually increase in value as well. This observation had very real fundamental foundations in finance theory and crowd behavior. Should one firm in a certain sector report strong earnings, … Read More
CFD Strategy and Market Volatility
Novice and experienced traders alike vie for an edge that can be used to pull profits out of what many consider random or efficient markets. Usually, this involves a complicated mix of indicators and set of rules for entry, stops, objectives and at least a basic structure for risk management among other components. However, one factor that is often over-looked by both technical and fundamental traders is the part that volatility plays in an overall successful strategy and even each trade. … Read More
CFD Trading | CDS and Trading Seasonality
No matter the security or market, investors and analysts have attempted to find a seasonality factor to exploit. One of the key principals most traders live by is that history repeats itself; and in that repetition there is an edge that can provide a profit. So, what is seasonality? Broadly, the term seasonal effect can be applied to any market pattern in price action that occurs during a specific period of a calendar year. This could be a specific direction in price action during a certain season or a consistent jump in volatility over the same month every year. … Read More
