Snippets

Strategies

Market Making

Market maker provides Bid and Ask prices for security and make a profit.

Arbitrage

Arbitrage is the practice of taking advantage of a price difference between two or more markets.

Hedging

Hedging is a risk management strategy employed to offset losses in investments by taking an opposite position in a related asset.

Trend Following

Trend following is an investment strategy that tries to take advantage of long-term moves that seem to play out in various markets.

Example

When the stock price crosses its 50-day moving average, the trader may choose to take a long position. Conversely, when the price crosses below the moving average, it may choose to take a short position.