‘Arbitrage’ is the term given to purchasing an asset in one market for a certain price and immediately selling it for a higher price in another market. This method relies on market inefficiencies; the trade is profiting through the exploitation of price differences on the same or very similar financial instruments across markets. Arbitrage Trading …
One of the most valuable aspects of using an automated system is its ability to operate at a pace no human could. High-frequency trading (or scalping) is the method of using an automated system to potentially make hundreds of thousands of trades in a fraction of a second. The biggest criticism of HFT is that it allows the …
This strategy works on the understanding that historical returns and asset prices will at some point return to their average levels. This strategy attempts to capitalise on dramatic changes in the price of a security, with a view to it returning to its previous position. This is a strategy that can be applied to buying …
This is one of the most straightforward strategies and involves following market trends. A trend is where a price is moving in a certain direction (for example, up or down). When the trend is going upwards, the automated system may take a long position – buying in anticipation of the stock, currency or commodity rising in value. …
Inflation, war, political unrest, natural disasters, elections and bank talks, to name just a few, all have an impact on the world’s currencies. A news-based trading strategy involves the algorithmic system reacting to news wires and generating trade signals based on what is happening in real-time. Characteristically, this type of trading involves holding positions for a very …
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Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Trading in financial instruments may not be suitable for all investors, and is only intended for people over 18.
