In this article I’d like to take a closer look at the terms “DOM,” “Level 2” and “Time & Sales.” I’d also like to describe order book trading. The most common order types All buy and sell orders are collected and matched in the order book. In this way, market price is continually established. Order …
I read an interesting article today (Aug. 19, 2015) in the FAZ about how many CFD traders there were in Germany. Here is a brief summary of the numbers mentioned: There are 47,000 active traders in Germany. Eighty-three percent think about investments (trading) on a daily basis. That compares to around 10 percent for the …
In this article you’ll learn all you need to know about the COT report and the COT data contained therein. COT data are regularly published by the Commodity Futures Trading Commission (CFTC) in its Commitments of Traders (COT) report. The COT report is available on the CFTC’s website. The COT data provide insight into the …
I’ve worked for various trading companies and would like to share my experiences with arbitrage in this article. As suggested by the headline, classical arbitrage involves taking advantage of price and interest rate differences in trading. What are the different types of arbitrage? We can classify arbitrage based on asset class, strategy and markets (spot …
Global macro is both a distinct hedge fund category and a trading strategy used by many hedge fund managers. It features a low correlation to other asset classes, low volatility and smaller drawdowns. For these and other reasons, it’s highly popular among investors. What is global macro? Global macro is usually based on a top-down …
In this article, I’d like to provide an overview of the most common financial securities examinations needed to work as a licensed securities professional in the United States. Series 3 The Series 3 is one of the best-known examinations. Successful completion entitles you to sell commodity futures as well as options on commodity futures. The …
Time, price and volume are the three factors governing price formation in markets. The Market Profile is a graphic that links them. Development of the Market Profile The Market Profile was developed by Peter Steidlmayer, a trader at the Chicago Board of Trade (CBOT), in the 1980s. Steidlmayer was looking for a way to gain …
A pivot point is a mathematically calculated point on a chart that often serves as support or resistance. It represents a potential turning point in the market or can be used as an indicator of market movements. Pivot point basics With the help of pivot points, you can easily and consistently calculate support and resistance …
Time & Sales, which shows the time and price of every executed trade, is an important analytical tool for trading. Occasionally you may have questions about your order executions and want to check the conditions under which trades were transacted. With my broker (Interactive Brokers), it’s very easy to track and check the trades in …
The term slippage (from the verb “to slip”) refers to the difference between the expected price of a buy or sell order and the actual execution price. This article describes my experience with slippage in trading. Slippage occurs in fast or illiquid markets There are three trading situations in which you may experience price deviations …
In this article, I’d like to explain the bid price, or bid, which plays an important role in trading. The opposite of the bid is the ask price. The bid is the highest price at which someone is willing to buy a security in the market. By contrast, the ask is the lowest price at …
In this article, I’d like to explain the ask price, or ask, which plays an important role in trading. The opposite of the ask is the bid price. The ask is the lowest price at which someone is willing to sell a security in the market. By contrast, the bid is the highest price at …