reference data in trading

Reference Data in Trading

Reference Data in Trading

Trading, here, refers to the transfer of a stock or security from the seller to the buyer. There is a number of risks involved in trading such as Liquidity Risk, Market Risk, Credit Risk, Interest rate risk, and so on. Along with all the risks mentioned, consideration of Operational Risk is also of so much importance. Operational risk refers to uncertainties and hazards faced in performing day-to-day or routine activities. --- Change it  (more…)
Downside Risk

Downside Risk

Downside Risk

Risk is the uncertainty of losing money invested in a security. To measure the risk or volatility of security we use Standard deviation. Standard deviation measures risk based on returns of security that are positive as well as negative. Therefore Standard deviation measures upside risk as well as downside risk.  As there is a risk and return trade-off, we say an investor should be compensated in terms of returns for the risk that he takes. But why would an investor be paid for the upside deviation, an investor should be worried about the downside deviation(risk)? (more…)
Trade Validation

Trade Validation

Trade Validation

 In the financial market, a trade is the conversion of an order placed on the exchange which is said to be completed when the buyer gets the securities and the seller gets the payment for the same. There is a number of steps involved in the successful completion of the trade. All the steps together create a 'Trade Lifecycle'. The Trade lifecycle consists of various trading and operational activities. Once, the trade is captured and enriched, the next step is of validating the trade to reduce the possibility of errors in the process ahead. (more…)
Commodity-Linked Securities

Commodity-Linked Securities

Commodity-Linked Securities

Investment instruments or securities that are linked to one or more commodity prices are known as commodity-linked securities. These commodity-linked securities provide income to the owner, generally in the form of pay-outs. Like, stocks and bonds, commodities are a class of assets but they are physical products that have uniform quality and are produced in large quantities, for example, cotton, gold, oil, gas, etc. (more…)
Trade enrichment

Trade Enrichment

Trade Enrichment

Enrichment refers to the action of improving or enhancing the quality or value of something by adding something else. It makes something more meaningful and rewarding. Thus, it can be said that trade enrichment means the action of enhancing the quality of trade, by applying relevant data, with the purpose of improving its efficiency. Trade enrichment makes the trade more worthy and rewarding. (more…)
Equity market

Equity market

Equity market

An equity market is a market during which shares of companies are issued and traded, either through exchanges or over-the-counter markets. Also referred to as the stock exchange, it's one among the foremost vital areas of a free enterprise, it gives companies access to capital to grow their business, and investors a bit of ownership during a company with the potential to understand gains in their investment supported the company's future performance. (more…)
Eurozone Debt Crisis

Eurozone Debt Crisis

Eurozone Debt Crisis

Eurozone Debt Crises is a multi-year debt crisis that has been happening in the European Union since the end of 2009. It is also known as the Eurozone crisis or European Sovereign Debt Crisis. The crisis erupted in the wake of the Great Recession after 2009 due to government structural deficits and increasing debt levels. In simple terms, it defines the struggle of Eurozone Countries to pay off the debts that accumulated over the decades. (more…)
Negotiable Certificate of Deposit

Negotiable Certificate of Deposit

Negotiable Certificate of Deposit

Negotiable certificate of deposit (NCD) was introduced in 1961 by the First National City Bank of New York which is now known as Citibank. The instrument allowed the banks to raise funds that could be used for lending. The First National City Bank of New York loaned $10 million in government securities to a New York broker who agreed to accept trades in CD so this created a secondary market in which the NCDs could trade. Participants in the market for NCDs primarily comprise wealthy individuals and institutions such as corporations, insurance companies, mutual funds, and pension funds. Those seeking a return on cash in a low-risk and liquid investment the market attract such investors. (more…)
High-Frequency Trading

High-Frequency Trading

High-Frequency Trading

High-frequency trading (HFT) is a trading method where powerful computer programs are used to carry out a large number of orders and transactions in less than a second. It is an automated trading platform that is used by large investment banks, hedge funds, etc. Multiple markets are analyzed and orders are executed by using complex algorithms.

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Market Sentiment

Market Sentiment

Market Sentiment

What Is Market Sentiment? The general prevailing attitude of investors as to anticipated price development in a market is called Market Sentiment. It is the overall attitude of an investor towards the financial market. It basically defines the investor's outlook towards particular securities. (more…)